esThe following are three short-run average total cost schedules for the only three possible plantsizes, 1, 2, and 3. Find the long-run average cost schedule and show the result in the second table.Size 1Q102030405060ATC$1.0090.85.88.931.05Size 2Q203040506070Long-RunQ1090ATC$.95.80.76.79.83.90Size 3Q405060708090AC$ATC$1.00.87.84.80.951.05

There are mainly two types of costs short run and long run. In the short run, some inputs are fixed…

Answered: Long-Run 10 90 AC $

Business

Economics

Long-Run 10 90 AC $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Calculate average cost when total cost is 300 and quantity is 15

A: # The average of the total cost which we spend on a single good is given by the average cost.…

Q: Output Total Cost 0 $4.00 1 $7.00 2 $8.00 3…

A: The main objective of any firm is profit maximization and a firm maximizes its profit by producing…

Q: Q1 It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold…

A: According to guidelines, first 3 subparts needs to be solved. Profit maximisation is done by…

Q: When marginal cost is greater than average variable cost, average variable cost i v (Click for List)…

A: Marginal cost is defined as the extra coat a firm incurs by employing an extra unit of input.

Q: When Yennefer produces 68 spells her total cost is $4,530 and her average variable cost is $23. What…

A: Answer: Given, Total cost (at Q=68) = $4,530 Average variable cost= $23 Fixed cost=Total cost-Total…

Q: Find the value of B. Quantity Total Cost Fixed Cost Variable Cost Average Total Cost Average Fixed…

A: "Average fixed cost measures the fixed cost of production per unit of output."

Q: Examples how a firm may suffer from diseconomies of scale

A: Diseconomies of scale happen when an organization or business firm develops so enormous that the…

Q: Draw the cost curve graph showing showing the 5 curves lab

A: In the realm of microeconomics, cost curves are pivotal in understanding the dynamics of production…

Q: Mr Jack is in the process of expanding his manufacturing business. He decided to open a plant in the…

A: Total cost is the total amount of expenditures a business incurs to produce a particular level of…

Q: Windhoek Manfacture tender to manulacture nurse's uniform.hecentlu,hündhek manufactue Company its…

A: Total cost (TC) incurred by any particular firm is the sum of all production cost that a firm incurs…

Q: ATC ATC2 ATC3 ATCA 2 4 10 Quantity (thousands of copies per day) A copy shop is choosing between…

A: In a market, when a firm produces an output and tries to generate at a level with the lowest average…

Q: P 100 er. 5 ATC AVC

A: Fixed cost refers to the cost that remains same at all levels of output. This cost does not depend…

Q: Use the information in the graph level of 500. a. Total fixed cost b. Total variable cost c. Total…

A: Total fixed costs refers to the total expenditure which remains fixed at all levels of output. It…

Q: he figure to the right ustrates the longun verage cost curve for a company hat makes motors Suppose…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Is a type of cost which does not vary with the unit of production and will remain constant…

A: Cost refers to the money involved in producing the goods and services by the producers. They include…

Q: O vats of juice $ 0 $ 30 1 10 40 25 55 45 75 2. 3.

A: Given variable cost of 3 vats = 45 Now, Average variable cost = variable cost / output = 45 / 3 = 15…

Q: $1,000,000- $500.000- 7,500 15.000 22.500 30,000 37,500 45.000 A B C. Total cost $2,500,000-…

A: Here we have to calculate the total Costs and break even points.The term "total cost" describes the…

Q: Vipsana's Gyros House sells gyros. She incurs a fixed cost of $120 per day. Vipsana pays $60 per day…

A: Fixed cost is the cost that remains same at all the level of output. Variable cost is the cost that…

Q: Consider a graph drawn with the average total cost curve and average variable cost curve. The…

A: Average total cost is the combination of average fixed cost plus average variable cost. So, the…

Q: Your cousin Vinnie owns a painting company withfixed costs of S200 and the following schedule…

A: Given: Quantity Variable cost 1 10 2 20 3 40 4 80 5 160 6 30 7 640

Q: Output TFC TVC TC MC ATC A 25 25 ---- -- 1 25 25 50 25 50 C 2 25 40 65 32.5 D 3 25 70 95 E 4 25 110…

A: The marginal cost is the cost of producing an additional one unit of output. Marginal cost (MC) is…

Q: 1) Complete the following table: Output 10 2 3 4 56 Total Cost 50 60 75 100 150 225 400 Variable…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Variable cost Quantity (number of cups) (taka) Rahim operates a small tea stall in his neighborhood…

A: (a) Total cost is sum of variable cost and fixed cost. => Total cost = variable cost + fixed…

Q: An auto repair shop faces the following weekly costs: rent, $600; labor, $500 per worker; parts and…

A: Firms invest in new capital assets such as equipment, machinery, and technology to increase the…

Q: What is this firm's efficient scale?

A: The production level at which a company achieves the lowest ATC per unit is referred to as its…

Q: Calculate the value of average cost of AFC is $70 and AVC is $67

A: According to the question, we are given that:- Average fixed cost = AFC = $70 Average variable cost…

Q: As total output increases average fixed cost v (Click for List) constant at a maximum falling rising…

A: Variable costs refers to those costs which depends upon the level of output. These costs increases…

Q: A firm manufacture robots, for which $1000 machinary is used. The additional per unit cost is $100.…

A: Total cost is the sum of fixed cost and variable cost. Variable cost is a cost that varies with the…

Q: A 500 400 300 200 100 Quantity (units per day) The graph above shows the cost in the short run 1.…

A: "In the short run, production process consists of one fixed input and one variable input of…

Q: What is another term for marginal costs

A: Marginal cost refers to the additional cost incurred by firm or a producer when one additional unit…

Q: Calculate TFC if average fixed cost is $30 and output is 50

A: The information being given is:- Average fixed cost = $30 Output = 50 units Total Fixed cost = ?

Q: The average variable cost for 2 units of output is O 12.5 O 7.5 O 95 0 5

A: The firms, and businesses in the market tend to make up the supply side of the markets. The firms…

Q: The firm has been working with variable cost of 100 dollars and it has fixed costs 100 dollars as…

A: Given variable cost of the firm = $100 Given fixed cost of the firm = $100

Q: Vipsana's Gyros House sells gyros. She incurs a fixed cost of $120 per day. Vipsana pays $60 per day…

A: Fixed costs(FC) are expenses that do not alter regardless of the production(Q) level. These are…

Question

es
The following are three short-run average total cost schedules for the only three possible plant
sizes, 1, 2, and 3. Find the long-run average cost schedule and show the result in the second table.
Size 1
Q
10
20
30
40
50
60
ATC
$1.00
90
.85
.88
.93
1.05
Size 2
Q
20
30
40
50
60
70
Long-Run
Q
10
90
ATC
$.95
.80
.76
.79
.83
.90
Size 3
Q
40
50
60
70
80
90
AC
$
ATC
$1.00
.87
.84
.80
.95
1.05

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define short-run and long-run average total costs

VIEW

Step 2: Complete the table by computing long run average cost

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Your cousin Vinnie owns a painting company with fixed costs of $200 and thefollowing schedule for variable costs:Calculate average fixed cost, average variable cost, and average total cost for eachquantity. What is the efficient scale of the painting company?
Kanye runs a musical dinner theater. Last year, he earned 50000 in revenue and had explicit cost of 20000. Kanye could have made 29750 selling video games on the internet and received an additional 10000 if he rented out the store and equipment. Calculate kanyes implicit costs.
6 5 nts eBook Print References Mc Graw Hill Output 0 1 2 3 4 5 6 7 8 9 $ Total Cost $2,500 3,410 4,040 4,480 4,900 5,220 5,540 6,310 7,320 9,710 units variabl Cost $ 0 b. What is the value of total fixed cost? units 910 1540 1980 2400 2720 3040 3810 4820 7210 Marginal Cost 1 c. What is the most productive level of output? $ 910 630 440 420 320 320 770 1010 2390 d. At what output is economic capacity? Output: e. If TFC doubled, what is the marginal cost of the 7th unit? Marginal cost: $ Average Total Cost 1 $ 3410 2020 1493.33 H a 1225 1044 923.33 901.42 915 1078.89 a Average Variable Cost D $ 1 625 500 416.67 35713 312.5 27778
don't use Al bot or chat GPT otherwise downvote.correct answer will get instant upvote
What is the total variable cost of 2 oil changes?
When marginal cost equals average variable cost, average variable costiv (Click for List) falling constant at a maximum at a minimum rising
Output TFC TVC TC MC АТС A 25 25 ---- -- ---- -- B 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the total cost at point E? 135 125 185 Cannot be determined
1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i. Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
ips Under decreasing returns to scale, average cost cost curve. as the quantity produced increases. Over this range of output, the marginal cost curve is Grade It Now the average Save & Continue
a If average total cost is $100, average variable cost is $30 and output is 50 units. What is the firm's total fix cost?
How can I construct a cost curve for ATC, AVC, MC