Suppose Nittany Bakery rents a building for $120 per day, and they can hire workers for $75 per day. The short run laborand output (quantity of scones) information is listed below. Fill in the columns for total cost and marginal cost. (Note: Youmay need to make columns for fixed cost (FC) and variable cost (VC) on a piece of scrap paper, which will make it easierto find total cost (TC).) Do not enter any dollar signs, and if necessary, round to two decimal places.Short Run Labor, Output, and CostsLabor (L) Output (Q) Total Cost (TC) Marginal Cost (MC)00--142123 244405 606757 84

Fixed Cost (FC): This is the cost of renting the building, which is $120 per day. This cost does not…

Answered: Suppose Nittany Bakery rents a building…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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After running a successful pineapple business, Diddy looks for a new business venture. Now he wants to run gold mining business named "Diddy Bling Bling" which produces/sells raw gold. For simplicity, two types of inputs are required to produce raw gold (workers and gold mine). In short- run production, the size of gold mine is fixed while the number or workers can vary. After consulting his business consultant, Diddy computes the following cost table. The quantity of raw gold (kilograms) Averaged Total Cost (gold mine size=small) Averaged Total Cost (gold mine size-medium) Averaged Total Cost (gold mine size-Large) 1 700 1400 1800 2 600 1300 1700 3 500 1200 1600 4 400 1100 1500 5 300 1000 1400 6 400 900 1300 7 500 800 1200 8 610 600 1100 9 700 500 1000 10 800 400 900 11 900 375 800 12 1100 250 700 13 1200 400 600 14 1300 490 500 15 1400 600 400 16 1500 700 350 17 1600 800 300 18 1700 900 350 19 1800 1000 400 20 1900 1100 500 21 2000 1200 600 22 2100 1300 700 Draw Diddy Bling Bling's…
Please fill out the missing figures Output Total Cost (TC) Total Fixed Costs (TFC) Total Variable Cost (TVC) Marginal Costs (MC) 0 100 ? ? ? 1 160 ? ? ? 2 200 ? ? ? 3 228 ? ? ? 4 260 ? ? ?
Consider the following cost function (C): C= 0.25q3 - 4q? + 75q + F. The equation for average cost (AC) is: AC = |. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The equation for variable cost (VC) is: Vc=. (Properly format your expression using the tools in the palette.) The equation for marginal cost (MC) is: MC =. (Properly format your expression using the tools in the palette.)
Average total cost decreases when marginal cost is average total cost. less than greater than equal to
Craig and Javad run a paper company. Each week they need to produce 1,000 reams of paper to ship to their customers. The paper plant's longrun production function is Q = 4KL, where Q is the number of reams produced, K is the quantity of capital rented, and L is the quantity of labor hired. The weekly cost function for the paper plant is C = 20K + 4L, where C is the total weekly cost. (a) What ratio of capital to labor minimizes Craig and Javad's total costs? (b) How much capital and labor will Craig and Javad need to rent and hire in order to produce 1,000 reams of paper each week? (c) How much will hiring these inputs cost them?
An investment of P200,000 can be made in a project that will produce a uniform annual revenue of P145,000 for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket costs for operation and maintenance will be P60,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 22% before income taxes. Is this a desirable investment? What is the payback period of the investment? Compute the rate of return. What is the net annual profit using annual worth method? What is the net present worth of net cash flow? The rate of return is [ Select ] [ Select ] 26.87% 25.65% 26.65% 24.87% The net annual profit is [ Select ] [ Select ] P9,742.93 P10,742.93 P11,742.93 P12,742.93 The net present worth of net cash flow is [ Select ] [ Select ] P27,900.25 P28,900.25 P26,900.25 P30,900.25 Is this a desirable investment? [ Select ] [ Select ] Yes No The payback period is [ Select ] Select ] 1.33 2.01 3.20 1.87
Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant) 1: When marginal cost is less than average variable cost, average variable cost is: 2 When marginal product is greater than average product, average variable cost is: 3: When marginal product is negative, total product is: 4: As total output increases average fixed cost is: 5: When marginal cost is at a minimum average product is:
Question 4: Marginal and Average Cost curves Suppose the cost function is given by C(Q)= Q²-2Q +16. a) Find the marginal cost function b) Find the average cost function c) Find the quantity where the MC cost and the AC cost curve intersect
Question 6: For each of the total cost functions, write the expressions for the average cost, average fixed cost, average variable cost, and marginal cost: 1. TC (Q) = 5Q 2. TC (Q) = 120 +6Q 3. TC (Q) = 6Q² 4. TC (Q) = 140 +5Q²
Calculate total costs at 4 units of output. Do not put a dollar sign in your answer. (The 6 columns are Quantity, Total Fixed Cost, Total Variable Cost, Total Cost, Average Total Cost, and Marginal Cost. The Quantity and Total Variable Cost columns have been filled in along with the first row for Total Fixed Cost. Average Total Costs and Marginal Costs are not calculated at a quantity of 0.) Quantity Total Fixed Cost Total Variable Cost Total Cost Average Total Cost Marginal Cost 0 15 0 XXXXX XXXXX 1 25 2 40 3 50 4 55 5 65 Calculate average total costs at 2 units of output. Calculate average total cost at 5 units of output. Calculate marginal cost at 4 units of output (moving from 3 units to 4 units). Can you tell if this is the short run or long run? Can you tell at which level of output profits will be maximized?
Douglas Fur is a small manufacturer of fake-fur boots in New York City. The following table shows the company’s total cost of production at various production quantities.
In Figure 2-a, the average variable cost curve is curve Group of answer choices A D C B

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