Answered: Suppose we have another firm known as…

Suppose we have another firm known as Sepanyan Corporation which makes a product known as Yeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?

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: Suppose a company sells a product for $50 per unit. The variable cost per unit is $20 and the…

A: The break-even point in business is the point at which total cost (including fixed and variable…

Q: The table shows the cost information for a farm when the farm has three different amounts of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 12. Which one of the following statements is correct concerning the relationships among the firm's…

A: According to the given question Cost functions relationship in simple words we can say that is the…

Q: Assume that it costs a company approximately C(x) = 484,000+ 160x + 0.001x² dollars to manufacture x…

A: Marginal Cost: it refers to the change in total cost due to 1 additional unit of production. As due…

Q: Q7/ IF you know that the total profit of a pharmaceutical factory is (500) RS, the cost price is…

A: The cost of production refers to the total expenses incurred in the production of goods or services.…

Q: a) type the profit function of the manufacturer,?(?, ?). B) determine the end points of the profit…

A: Total Revenue -: It refers to the total receipts of a firm from the…

Q: The Night Owl Restaurant generates sales of $1,000,000 a month with variable costs of 35%. The Kobe…

A: Total sales of menu items=20000 Kobe beef burger=10%price=$13cost=30%

Q: Ben's swim coach estimates that his time, t, in the 100-yard butterfly at a big upcoming meet as a…

A: Given: t= 50 + 8e-0.00005yt : timey : yards per week

Q: Total function, TC=1000 +10Q^2 .Determine the output level that minimizes Average Total Cost and…

A: Total cost (TC): This is the minimum cost, which entails all the costs, incurred in producing a good…

Q: A multiproduct firm’s cost function is C(Q1 ,Q2 ) = 50 -0.2Q1Q2 + 0.1Q22 Are there economies of…

A: Cost function:Economies of scope occur when the total cost of producing a combination of goods or…

Q: You have a price of $5 per unit. Your total variable costs are $1 per unit and your fixed costs are…

A: break-even is at TR=TC TR=P*Q P=5 and Q=? TR=5Q

Q: What is the price? to make it breakeven

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: Felix's only variable cost. Felix has a fixed cost of $80 per day and pays each of his workers $120…

A: The concept of MC can be explained as a cost that shows the type of cost that an individual,…

Q: A skateboard manufacturer produces skateboards at a cost of $45 each, monthly fixed cost of $9000.…

A: Per unit cost of skateboards: $45 Monthly fixed cost: $9000 Let x be the quantity of skateboards…

Q: A small coastal town has a 1-kilometer-long beach represented by D = [0,1000]. During summer months,…

A: The term "Arbitrary Location" generally refers to a place or position that is chosen or selected…

Q: AVC=10-0.03Q + 0.00005Q2 TFC=60 What is the TC function? What is the minimum AVC?

A: Total cost is the sum of total fixed cost and the total variable cost. Average variable cost is the…

Q: Your local pet café has the following costs: $3,000 per month in rent, $5,000 per month in wages,…

A: Firms operating in a market incur fixed costs and variable costs. Fixed costs are the costs that do…

Q: 5) If AVC = 20 & ATC = 25, then what is AFC? %3D %3D 6) If a firm produces 100 uunits of output and…

A: Fixed cost is independent of output produced.

Q: The MBF plant costs a total of $ 45,000 if it produces 500 products, and a total cost of $ 100,000…

A: Total Cost = 45,000 Quantity = 500 If produces 1000 units then TC = 100,000

Q: ou own AAA Audio/Video Repair. You make service calls to customers’ homes to repair their…

A: Fixed cost = 10,000 Variable cost = 20/service

Q: A company with two different plants manufactures guitars and banjos. Its production costs for each…

A: The cost of production of a firm involves costs of labor, raw materials, and capital. Out of the…

Q: Suppose f(x1, x2)= x1 1/3x21/2,w₁=w2=1,for pr ofit maximization, what is the long-run cost function?…

A: Given Production function: fx1,x2=x11/3x21/2 ........(1) Input prices are w1= w2 = 1 We…

Q: Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: company has determined that its prodor for a product can be described by linear function. The profit…

A: Definition of Breakeven - The level of output at which profit levels is zero or the total cost is…

Q: TC=400+35Q-6Q2+0.1Q3 Draw TC, TFC, MC, and TVC schedule with graphs from Q=10 to Q=50

A: Total cost refers to the input cost that is incurred to produce output. Total fixed cost refers to…

Q: The difference between ATC and AVC decreases with decrease in level of output.

A: Average total cost (ATC) is the ratio of the total cost (TC) and the quantity (Q). ATC=TCQ Average…

Q: TC = 217 + 55Q + 4Q2 What is the average variable cost when 10 units are produced? Enter as a valu

Q: Finley's orchard incurs $90,000 per year in fixed costs. Last year, their total production was 100…

A: Fixed cost is the cost that remains same at all levels of output. Average Fixed cost is the Fixed…

Q: Two tomato processing plants are located along a line 100 miles long. Plant 1 is at mile 30 and…

A: Given information 2 tomato processing plants located along a line 100 mile. Plant 1 is at mile 30…

Q: What is meant by a sunk cost? Give typical sunk costs for an IT project.

A: Sunk costs are a type of fixed costs and they do not change irrespective of the levels of…

Q: The hourly operating cost of a plane which seats up to 405 passengers is estimated to be $5,328. If…

Q: 4. Optimize the following function and comment about the findings. y =- 5x; +10x, + x,x, • 2x{ +4x;…

A: here we optimize the following function as given below;

Q: Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in…

A: Production cost is the monetary value incurred on factor of production . And average total cost is…

Q: Suppose that, when producing 35 units of output, a firm's AVC is $20, its AFC is $6, and its MC is…

A: Variable cost is the part of total cost that changes with change in output. AVC = VC/Q Fixed cost is…

Q: - TC

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…

A: Explicit cost refers to out of pocket expense that is incurred in order to purchase or hire input.…

Q: The table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If…

A: Marginal cost is the cost of producing one more unit of a good. It can be calculated by taking the…

Q: FC = $20, VC = $10, what is TC? %3D %3D

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You inherited your father's concrete company which typically pours slab foundations for single…

A: Variable costs are costs that change as the volume changes. Fixed Cost: Fixed costs are expenses…

Q: 8. A manager is trying to decide whether to purchase a certain part or to have it produced…

A: A production cost known as a variable cost can go up or down in response to shifts in a company's…

Q: park Studio produces commercials for other companis. A 2-minute commercial, for example, needs…

A: Isoquant is the graphical representation of all the combinations of inputs on a curve that produces…

Question

Suppose we have another firm known as Sepanyan Corporation which makes a product known as

Yeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps with 3 images

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

TC= 1/3 Q^3- 15Q^2 + 480Q+ 900 a) Write down the equation for MC, AFC b) Find the values of Q for which MC and AVC are minimized c) Plot the graph of MC, AFC and AVC on the same graph. Comment
You are the owner of a small company that makes laptops at the price of $550. Your variable cost of production is 0.75q, such that q represents number of laptops made. If you were going to build a second company that has the following variable cost for 0.3q. What is the maximum fixed cost that you are okay with paying for this new company?
Q57
The total cost of producing mobile phones can be represented by TC = 50 +2q. The MC of the 5th mobile is
Find the value of TFC if average fixed cost is $50 and the output is 50 units
Please don't provide handwriting solution
The profit of a company, in dollars, is the difference between the company's revenue and cost. The cost, C(x), and revenue, R(x), are functions for a particular company. The x represents the number of items produced and sold to distributors. C(x)=-2300+40x R(x)=840x-x² a) Determine and simplify the profit function. Write your answer in descending order. P(X)-
QUESTION Given TC = 100 + 60Q – 12Q2 + Q3 find: (a) The equations of the TVC, AVC, and MC functions. (b) The level of output at which AVC and MC are minimum, and prove that the AVC and MC curves are U-shaped. (c) Find the AVC and MC for the level of output at which the AVC curve is minimum
please answer within 30 minutes.
Q) Economies of Scale What will happen to the cost of producing Teslas if the Shanghai gigafactory doesn’t achieve economies of scale?
Assume that the linear cost and revenue models apply. An item costs $6 to make. If fixed costs are $2400 and profits are $2100 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.) R(x) =
Solve this exactly plz I can't afford to post again and again so plz give me exact soloution in 30 min and take a thumb up plz