Suppose you are hiring a contractor to remodel your kitchen. One contractor offers a fixed price for the complete job, while a competing contractor offers a cost-plus offer where you are billed a multiple of the contractor’s cost of materials. Which contractor has an incentive to incur cost overruns? Which contractor has an incentive to use substandard materials and less competent labor?

Q: If the firm hires 5 employee, total fixed costs equals

A: Total fixed cost is the cost which is even exits when output is zero. So at zero output we have the…

Q: Firm A is currently producing 102 units of output with total variable cost $4 and average fixed cost…

A: The current production of Firm A is 102 units. The total variable cost is given as $4The average…

Q: Use the following information to create a standard cost card for production of one photography drone…

A: Cost is the sum of the resources—including time, money, materials, and labor—used to create a good…

Q: Kevin quits his computer programming job, where he was earning a salary of $60,000 per year, to…

A: Given the give up salary = $60000 Rent = $24000 Salary paid to himself = $40000 Rent = 0 Other…

Q: Solve the attachment.

A: The firms incur costs as per their production processes and other requirements to maintain and make…

Q: Classify each of the following as fixed or variable costs and give a brief explanation for your…

A: The study and evaluation of corporate financial concerns using abstract economic concepts and ideas…

Q: Consider the data in the table which applies to the provision of psychological testing services.…

A: Variable Cost is the cost which depends on the amount of output. It changes with the change in the…

Q: The yearly demand for a widget is 5000 units. The cost of ordering is $100 per order and the cost of…

A: Economic Order Quantity, also known as Economic Purchase Quantity, is the order quantity that…

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: If fixed cost decreases to $16,000, does this change the production decision of the airline in the…

A: There are two types of costs, one is fixed and other is variable.Fixed cost does not depend on…

Q: Ontario is removing vehicle license renewal fees (article below). How does this affect the cost of…

A: Understanding the impact of eliminating licence renewal fees on automobile ownership costs is the…

Q: If marginal cost is below average total cost, then average total cost    Question 10 options:   a)…

A: Marginal cost is the additional cost incurred when production is increased by one unit.

Q: 1. Suppose a cost function is defined as C(q) = 8 + 13q + 15q^2 (a) Find the ATC, AVC, AFC and MC…

A: Average total costs: Economic costs involve not just the accounting costs but also the opportunity…

Q: Cost is in dollars and x is the number of units. Find the marginal cost function. MC for the given…

A: Given data: Cx=700+5x+0.04x2

Q: If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? •…

A: Economies of scale refers that when the cost per additional unit is decreasing due to increasing in…

Q: Fixed Costs are expenses that: Multiple Choice Do not change as production changes. They are usually…

A: Fixed cost are the cost that do not depend on level of production

Q: Which of the following is an example of an implicit cost? Group of answer choices A)Federal taxes…

A: Implicit cost is such a cost that shows factor cost owned by entrepreneur himself and also known as…

Q: (a) The revenue from selling q items is R(q) = 50q - q 2 and the total cost is C(q) = 15 + 10q i.…

A: Given: R(q) = 50q - q2C(q) = 15 + 10q   (i) Fixed cost is that component of total cost function that…

Q: One of the components of direct cost of construction projects is equipment cost where a contractor…

A: The cost of rented or owned construction equipment, as well as the costs of fuel, loading,…

Q: (a) Find the number of hours for which each cost function will give the same cost. hours (b) !f the…

A: Fron the provided data, Acme (x); 140+10x Bell (x);200+4x

Q: Where Q = quantity, TC = total cost, TFC = total fixed cost, and TVC = total variable cost; average…

A: The average variable cost is the total variable cost per unit of output. The total variable cost is…

Q: Given the following production cost function: TC=5+29 R1 R² +0.5 R³ TC: total cost in '00 (hundreds)…

A: Production costs are the costs a company incurs while creating a something or providing a service…

Q: Fixed cost V [ Choose ] all costs that are incurred over the life of a product, process, or service…

A: The sum of all costs spent by a firm in achieving a given level of production is known as total cost…

Q: A large architectural firm has just landed a contract to build a hospital. Nine architects currently…

A: In economics, total cost is the sum of all costs incurred by a firm in producing a certain level of…

Q: Question A5 For a particular product, Marginal Cost (MC) = Q + 5. Find an expression for Total Cost…

A: "Marginal cost is addition to the total cost when more unit of output is produced and it is obtained…

Q: cost curve creases, does not shift; shifts upward shifts upward; shifts upward shifts upward; does…

A: Cost refers to all the expenses that incur in the process of production of goods or services. There…

Q: Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: Costs that change with the level of per unit of production are referred to as ________.     Fixed…

A: cost, in like manner use, the money related worth of labor and products that makers and consumers…

Q: A manufacturing company is currently producing 1,000 units of a product at a total cost of $10,000.…

A: Economies of scale refer to the cost advantage that companies experience when they increase their…

Q: Consider the total cost function, TC = 25 + 6Q - 5Q^2 + 6Q^3 Find the marginal cost if firm want to…

A: Marginal cost is nothing but the cost incurred to the firm when they want to produce additional unit…

Q: In the following problem, c represents the average cost per unit, which is a function of the number…

A: Marginal cost refers to the addition to the total cost when one more unit of the variable factor is…

Q: Justify the statement. T/F  Variable cost change with the change in the level of output in a…

A: Cost is the monetary value of the resources that are given up or depleted in order to accomplish a…

Q: Justify the statement. Whether true or false. Fixed cost does not change with the change in the…

A: Cost is the value of the resources (including time, money, materials, and effort) used to produce a…

Q: The marginal cost function for a company is given by C'(a) = q²-17q+70 dollars/unit, where q is the…

A: 1. Find the Total Cost Function:We are given the marginal cost function:C'(q) = q² - 17q + 70To find…

Q: Firm A is currently producing 104 units of output with total variable cost $4 and average fixed cost…

A: To calculate the marginal cost (MC), you can use the following formula:MC=ΔTVC/ΔQ​Where:MC is the…

Q: Implicit costs are Multiple Choice ) the same as economic costs. comprised entirely of actual…

A: When computing the cost associated with a specific task or event, an individual looks into two types…

Q: Let's explore how rising costs helped to kill off most printed newspapers after the Internet became…

A: a)The AFC increases. For 1 million papers, AFC = (700,000+1,250,000+0.35*1,000,000).1000000 =…