QUESTION 15Imagine a small juice producer named "Bilberry Infused Beverages" known for its refreshing beverages. Theowner, Louis, keeps track of the production costs. Recently he decided to expand his operations and producemore Juices to meet the increasing demand. Table 15.1 below shows the data he has collected: CompleteTable 15.1 below and use the information to answer the question that follows.Table 15:1 Production Costs for Bilberry Infused Beverages(4 Marks)Output0Total cost30Fixed costVariablecostMarginal AveragecostAveragecostfixed cost0110183224565646B76781515What is the marginal cost of producing the 8th unit of the good?a) 4b) 10c) 12d) 29

OutputTCFCVCMCACAFC030300---14030101040.0030.002483018824.0015.003523022417.3310.004563026414.007.50…

Answered: QUESTION 15 Imagine a small juice…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the production of hamburgers. The average total cost (ATC) and average fixed cost (AFC) of producing hamburgers are illustrated in the graph to the right Use the four-point curve drawing tool to graph the average variable cost of producing one, two, three, and four thousand hamburgers. Properly label this curve Carefully follow the instructions above, and only draw the required objects. Cost (cente per unit) 26 24- 22- 20 18- 16 14- 12- 10 B 6 4- 2 ATC AFG Quantity of hamburgers (in 1000s) Q du
Question 15 (i) Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2 (ii) Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. Both firms aim to maximize profit and produce at P = MC. A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2
part E
Question 2: This question refers to a firm's production and profit maximization in the long-run. The firm's cost function is: TC = 20E + 100K. 2.a) In the graph below, plot the firm's isocost line representing total costs of $120,000. Indicate on the figure the value of the isocost's slope. Also indicate where the isocost line intersects with the horizontal and the vertical axes. K E 2.b) The firm is considering producing a total of 200 units. If the firm wants to minimize the cost of producing this level of output, what must the marginal rate of technical substitution be?
Costs and Profit Maximization: Work It Out 1 Suppose Margie decides to lease a photocopier and open up a black-and-white photocopying service in her dorm room for use by faculty and students. Her total cost, as a function of the number of copies she produces per month, is given in the table. Number of Photocopies Per Month Total Cost Fixed Cost Variable Cost Total Revenue Profit 0 $100 1,000 $110 2,000 $125 3,000 $145 4,000 $175 5,000 $215 6,000 $285 a. Fill in the missing numbers in the table, assuming that Margie can charge 6 cents per black-and-white copy. Margie's fixed cost is: $ Variable cost, 0 photocopies/month: $ Variable cost, 1,000 photocopies/month: $ Variable cost, 2,000 photocopies/month: $ Variable cost, 3,000 photocopies/month: $ Variable cost, 4,000 photocopies/month: $…
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Q3 need in 10 minutes
1. Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs: Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars) 1 15 2 35 3 60 4 90 5 135 6 240 7 480 The efficient scale is houses. ? #2 image : The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average variable cost will increase. Average total cost will increase. Average…
question # 2
(a) Explain intuitively why a firm's average cost curves are U-shaped and why does its average variable cost curve achieve its minimum at a lower level of output than the average total cost curve? (b) You are given the following data on output and inputs for 10 production periods: TIME OUTPUT CAPITAL (K) LABOR (L) 1 225 12 20 240 14 22 3 278 10 24 4 212 14 18 5 205 12 20 6 297 16 24 7 242 16 20 8 155 10 14 212 8 20 10 180 8 14 Estimate the parameters (A, a, ß ) of Cobb-Douglas production function using the Least-squares (OLS) regression method. [ Assume Q = AK“ L® ]. Use the estimated parameters to determine: Returns to Scale, Equations for the marginal product of labor and Capital. Calculate the marginal products of capital and labor for the input combinations: K = 10, L = 25. Make a comment based on your findings.
None
For each lettered space in the following table, determine the appropriate dollar amount.

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