Q 4: Answer the questions below using the following Table (you can also take help from the Figures if needed): М ($) 7,259 6,548 5,838 5,125 AC ($) 7,659 7,348 7,038 6,727 6,417 6,106 Total cost ($) 105,311,250 202,070,000 Students 13,750 27,500 41,250 55,000 68,750 82,500 Students Undergraduate 4,417 3,706 MC ($) 6,541 6,821 7,102 7,383 7,664 7,945 369,985,000 441,168,750 503,745,000 Total cost ($) 33,385,000 51,697,000 AC ($) 2,750 5,500 8,250 11,000 Graduate 12,140 9,399 8,672 8,365 92,015,000 13,750 16,500 8,249 8,228 113,423,750 135,762,000 (а) IDENTIFY and EXPLAIN differences between the universities' cost structures for undergraduate and graduates? (b) The new Vice Chancellor has asked you for advice on whether she should consolidate or expand the programs. Provide your advice using the information in the table. (c) What is the effect of the introduction of a license fee of 9 million dollars by the government for undergraduate programs being offered by universities on the zero-profit curve for these programs? Use relevant plots in your answer.

How do you think the costs of teaching a commerce degree online would compare to the costs of a commerce degree taught on-campus at a university  (i.e., face-to-face)? (question is related to economic profit/cost) e.g. involving Average Total Cost (ATC), etc

Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is s At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 1,000 700 30 400 90 200 100

600 550 500 450 400 360 350 300 270 250 200 150 100 50 0 ATC> MC a 6 10 19. What is the Average Total Cost at Q=6? a) 7.50 b) 12 c) 20 d) 25 e) 45 f) 100 g) 120 h) 160 b 20 O ATC=MC 30 TC ATC< MC 37 40

q 075150225 300 375 450 C(q)21 29 26 25 30 25 27 The table shows the marginal cost of producing q units of goods. a) If the fixed cost is $9600, use the average of left- and right- hand sums to determine the total cost of producing 225 units. Answer: $ b) How much would the total cost increase if production were increased one unit, to 226 units? Answer: $

Question 22

Suppose a company has fixed costs of $1500 and variable costs of (3/4)x + 1120 dollars per unit, where x is the total number of units produced. Suppose further that the selling price of its product is 1200 − (1/4)x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.)x =  (b) Find the maximum revenue. (Round your answer to the nearest cent)$  (c) Form the profit function, P(x), from the cost and revenue functions.P(x) =         Find maximum profit. (Round your answer to the nearest cent.)$ (d) What price will maximize the profit? (Round your answer to the nearest cent.)

Suppose that the total variable cost for 5 outputs is equal to $100 and the total fixed cost for the same output is equal to $50. The total per unit cost (ATC) is? Group of answer choices $ 20 $ 100 $ 30 $ 50 $ 10

Explicit cost = $100 Implicit cost = $163 Total cost = ?

OUTPUT TOTAL COST 40 49 2 57 3 64 4 70 5 77 6 85 The TVC of producing 4 units of output is : The AFC of producing 6 units of output is: : The marginal cost of producing the fifth unit of output is: : The ATC of producing 5 units of output is: