ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose a firm in a
- What are the short run impacts of this innovation on both the firm and the industry? Please include a graph to illustrate the short run impacts.
- What are the long run impacts on both the firm and industry? Please include a graph to illustrate the long run impacts.
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- Situation 21-1 Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be constant at $0.30. She has already paid $20,000 for the donut-making machinery and one year's rent. Refer to Situation 21-1. What will Diane's total costs be if she sells 2,500 donuts in her first week and then goes out of business? a. $20,750 b. $30,500 c. $20,880 d. $10,950arrow_forwardI'm not sure if I am doing this correctly.arrow_forwardThe graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5arrow_forward
- In the following table, complete the marginal cost, average variable cost, and average total cost columns. Quantity Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost (Vats of juice) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 30 1 35 15 45 3 30 60 50 80 75 105 105 135 On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Jane's Juice Bar. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 vat of juice to 2 vats of juice is $5, then you would plot a point at (1.5, 5).) Then use the purple points (diamond symbol) to plot the average-variable cost curve starting at 1 vat of juice, and use the green points (triangle symbol) to plot the average-total-cost curve also starting at 1 vat of juice. MAAAAarrow_forwardSerena and John run a business that sets up and tests computers. Assume that Serena and John can switch between setting up and testing computers at a constant rate. The following table applies. Serena John Minutes Needed to Set Up 1 Computer 48 30 Test 1 Computer ? 40 Number of Computers Set Up or Test in a 40-Hour Week Computers Set Up Computers Tested 50 80 (25 computers set up, 40 computers tested) (0 computers set up, 80 computers tested) (8 computers set up, 32 computers tested) (50 computers set up, 0 computers tested) 80 60 Refer to Table 3-7. Which of the following points would not be on Serena's production possibilities frontier, based on a 40-hour week?arrow_forwardUSE THE GRAPH TO ANSWER THE FOLLOWING QUESTIONS: (IF REQUIRED, USE THE DISCREET NUMBER OF BARRELS). ANSWERS IN WHOLE NUMBER a. How many barrels of natural-organic oil reflect the lowest minimum average variable cost?b. How much is the price of the natural-organic oil per barrel?c. How much is the fixed cost to produce the natural-organic oil?d. How many barrels of natural-organic oil should the firm produce to maximize its profit?e. At what production level would the marginal cost exceed the average cost?arrow_forward
- need help with the graphs Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardHow would you calculate the marginal cost of your firm's output? (think of a single product, not an industry).arrow_forwardWhat are transaction costs? How do transaction costs affect the boundaries of a firm?arrow_forward
- What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C Question 5 d The number of firms will eventually increase, but the existing firms will cut back production in the short run. The number of firms will eventually decrease and the existing firms will cut back production in the short run. The number of firms will eventually decrease, but the existing firms will expand production in the short run. The number of firms will eventually increase and the existing firms will expand production in the short run. Barrow_forwardQ15arrow_forwardWhich of the following represents a long-run decision for the firm? a. rehiring workers who were previously laid off. b. determining what price to charge for a given level of output. c. deciding how much output to supply to the market at the current market price. d. building another wing on the plant in order to add a new assembly line. answer. (d. building another wing on the plant in order to add a new assembly line.) Please help me explain this questions. Thanks in advancearrow_forward
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