The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.| Output | TVC ||--------|------|| 1 | $30 || 2 | $50 || 3 | $65 || 4 | $85 || 5 | $110 |The total cost of producing 3 units of output is _______.**Explanation:**- The table lists the total variable costs associated with different levels of output.- Fixed costs when output is zero are $40.- To find the total cost of producing 3 units, add the fixed cost to the TVC for 3 units: \[ \text{Total Cost} = 40 + 65 = 105 \]

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question. Output TVC $30 50 65 85 110 1 2 4 5

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question. Output TVC $30 50 65 85 110 1 2 4 5

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: The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable…

A: A crucial idea in economics is the concept of cost. It speaks of the sum paid to obtain any goods or…

Q: e) Make a graph with the CFT, CVT and CT. On the back it describes what the graphed curves mean f)…

A: Before making the graphs for parts e and f, we need to calculate the following table as you must…

Q: Suppose a company has fixed costs of $40,800 and average variable costs given by AVC(x)-x + 333…

A: The fixed cost of the firm is FC = $ 40,800 and the average variable cost is, AVC(x) = 1/3*x + 333…

Q: FIGURE 7-2 $100 90 80 70 60 50 40 30 20 10 1 2 3 4 5 6 7 8 9 10 Quantity of Output Refer to Figure…

A: please find the answer below.

Q: Distinguish between implicit and explicit costs and give examples of each. In addition, explain how…

A: Explicit Costs are those costs that are directly observed like the cost involved in hiring labor or…

Q: QUESTION 8 Select all that are true regarding marginal profit: O When marginal revenue exceeds…

A: Marginal profit is the profit procured by a firm or person when one extra or marginal unit is…

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: If your revenue during the first year of business is $48,000, and you incurred $4,000 in expenses…

A: It can be defined as the profit taking into account both the explicit costs of a business and the…

Q: 1. A writer receives royalty payments of 15 percent of total revenue from the sale of their book.…

A: Total revenue is the product of price and quantity. Marginal revenue is the change in total revenue…

Q: A company has the following output and total costs. It can sell each Calculate the average and…

A: marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: A firm operates in the short run with total fixed costs of $8750 and total variable costs related to…

A: Total cost is the sum of fixed cost and variable cost. Total variable cost changes with the change…

Q: Watchshop is a watch manufacturing company that sells low-end wrist wacthes. They hire labour at the…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Q: Exhibit: Costs of Producing Bagels (cents) Quantity of Bagels per Period Costs 10 1 2 3 4 5 6 7…

A: Total cost is the sum of total fixed cost and total variable cost. Fixed cost are the cost that…

Q: 1. It costs $25,000 to build 30 refrigerators. It costs $30,000 to build 40 refrigerators.…

A: Cost: It is the value of goods and services in terms of money.

Q: C. The following table shows the short-run average total costs for five successively larger plant…

A: Economies of scale and diseconomies of scale are important concepts in economics. Economies of scale…

Q: 4. Think of a production technology that has increasing marginal cost until a “mile- stone" level of…

A: Marginal cost:Marginal cost is the expenditure incurred for marketing that one unit, whereas…

Q: Q 0 1 2 3 4 5 6 7 8 9 10 11 TC $48 73 94 114 130 148 168 189 216 246 278 320 FC 1 VC AFC n/a AVC n/a…

A: Cost is the total expenditures incurred by a firm when utilizing economic resources during…

Q: Which of the following is most likely to be an implicit cost?* rental income foregone on assets…

A: NOTE: .We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: A bag factory produces 40 units of output. Its average variable cost (AVC) = $23, average total cost…

A: The bag factory produces 40 units of output.The average variable cost is $23. The average total cost…

Q: otal Revenue Cost of Lemonade Wages

A: Accounting profit is the subtraction between total revenue and explicit cost. A firm's payments to…

Q: Fill in the remaining cells of the table. (Note: If a value is a decimal, round to the nearest…

A: MC = Change in TC / Change in Q AFC = TFC / Q AVC = TVC / Q ATC = TC / Q Q TFC TVC TC MC AFC AVC…

Q: 12 Precast Pools, Inc. sells their product for $3,000 each. At a volume of 20 units, their labor,…

Q: Marginal Cost (dollars) Units of Variable Total Cost Output Cost (dollars) (dollars) 0. 60 45 105 45…

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

Q: Differentiate between explicit and implicit costs. Explain the importance of considering both types…

A: Explicit cost: It is the cost that is incurred in running the day-to-day operations of a business…

Q: Management believes it can sell a new product for $8.50. The fixed costs of production are…

A: As per the guidelines, we only answer one question at a time. So, I am answering the first one.…

Q: The way in which accountants and economists analyse the costs of a firm differ. Discuss the…

A: Costs are the expenses being incurred for running a business. There are different types of costs…

Q: A firm with positive fixed costs encounters CRS and then DRS as it expands production. Show the…

A: Constant return to scale where MP is a horizontal line and In Diminishing returns to scale MP is…

Q: 4. Consider the table below which shows the total fixed costs (TFC) and variable costs (TVC) for…

A: The average cost can be calculated by dividing the total cost by the level of output. Marginal cost…

Q: Our firm produces two products: generators and solar panels. Name five economies of scale you would…

A: Economies of scale allude to the cost advantages an organization gains with the increase in…

Q: If accounting profit is $400000 greater than economic profit, what do implicit costs equal?

A: Implicit cost: A certain expense is any cost that has just happened yet not appeared or detailed as…

Q: A firm has the following total revenue and total cost schedules: TR = $3Q. TC = $4,000 + $1.7Q.…

A: Break-even is the point at which revenue and total costs are equal, indicating that the business is…

Q: Find the value of explicit cost of the firm if the revenue generated is $8000 and the accounting…

A: The values given are:- Total revenue = $8000 And accounting profit = $5500 We can calculate the…

Q: Watchshop is a watch manufacturing company that sells low-end wrist wacthes. They hire labour at the…

A: Given: Labor rate= tk. 3949.0 per worker Fixed cost=tk. 10630.0 per week

Q: The fllowing Table describes the costs of production for a local firm Quantity vc TC APC AVC ATC MC…

A: Recall the following concepts: Variable Cost (VC): Costs which increase with increase in quantity…

Q: Question 5 of 16 Sandra's company has a machine that can produce a maximum of 45,000 components per…

A: Breakeven is a point where a firm earns zero profit or at a situation of no profit no loss. It is a…

Q: Use the data in the table below Q P MR 0 220 1 210 210 420 2 200 190 210 3 190 170 140 4 180 150 105…

A: Note:- Dear learner you have posted multiple questions. As per our policy we have solved only first…

Q: Suppose that the firm Smith Co sells 400 blouses per month for $80 per blouse. Roberto, the owner of…

A: Accounting cost only include the explicit costs. But Economic profit includes both explicit and…

Q: Problem 05-06 A firm's fixed costs for 0 units of output and its average total cost of producing…

A: The average total cost is the cost of producing one unit of anything. This is obtained by dividing…

Q: Management believes it can sell a new product for $8.50. The fixed costs of production are…

A: The break-even output (Qb) is the one where the firm's profits are reduced to zero. That is , its…

Question

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.

| Output | TVC |
|--------|------|
| 1 | $30 |
| 2 | $50 |
| 3 | $65 |
| 4 | $85 |
| 5 | $110 |

The total cost of producing 3 units of output is _______.

**Explanation:**
- The table lists the total variable costs associated with different levels of output.
- Fixed costs when output is zero are $40.
- To find the total cost of producing 3 units, add the fixed cost to the TVC for 3 units:
\[ \text{Total Cost} = 40 + 65 = 105 \]

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

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

1200 100.0 20.0 F20 100 -100 A company produces school buses. The graphs of the Cost function (red) and the Revenue function (blue) are given on the figure. (You may click on the figure to see a bigger version.) The horizontal axes represents quantity in number of units. Cost and Revenue are measured in thousands of dollars. Answer the following questions. 1. What are the fixed costs? Answer: thousand dollars. 2. Suppose the current level of production is 19 buses. Should the company produce 20 th bus? Answer "yes" or "no" 3. Between 0 and 100, approximately what level of production maximizes the profit? (Or minimizes the losses if the company doesn't make any profit). Answer:
If You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. then your accounting profit is: Select one: a. 20,000 Ob. 30,000 O c. 40,000 O d. 10,000 O e. 60,000
Find the value of explicit cost of the firm if the revenue generated is $8000 and the accounting profit is $5500
part E
tc=1500+15q+6q^2+q^3 1=the total fix cost at 1000 and 500 units of output? 2=the total variable cost,average cost and marginal cost at 50 units of output.
a) The owners of firms in the real world would generally expect (in the long run at least) to have some positive of profits on their accounting statements. However, in economic models we usually assume that firms will be willing to operate for zero economic profits even for the long term. Explain why this is the case.
Answer each of the following as true or false and briefly explain your answer. 9 39 8 1a) If ec> 1, increasing returns to scale and decreasing average costs are indicated 1b) 7 17 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Average cost exceeds marginal cost at the minimum efficient scale of plant. 0 0 1c) DA When total fixed cost and price are held constant, a reduction in average variable cost will typically cause a reduction in the breakeven activity level. 10X00X0 0,0 0,0 0 When long-run average cost is decreasing, it can pay to operate smaller plants at their peak efficiency rather than larger plants with some excess capacity.
XY Inc. produces certain product at a labor cost of $10 and material cost of $15 per unit. The fixed charges of the firm is $10,000 per month, and the variable costs besides the material and labor costs are $8 per unit. The products are sold wholesale at $63 each. Using this information. the break even sales volume of the firm is Blank 1 units Blank 1 Add your answer
Q3 need in 10 minutes
Use the following table to answer the next question. Output 0 1 2 3 4 5 Total Cost $5 9 12 15 20 27 The average total cost of producing 4 units of output is $ type your answer... Marginal cost is equal to average total cost between type your answer... and type your answer... units of output.
Suppose that a firm produces 475,000 units a year and sells them all for $20 each. The explicit costs of production are $1,300,000 and the implicit costs of production are $200,000. The firm earns an accounting profit of
K-Electric's costs of production as follows: Quantity Q3. Total Fixed Costs Total Variable Costs Rs. 0 Rs. Rs.100 Rs.100 Rs. 100 Rs.100 Rs.100 Rs.100 Rs.100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 3 4 a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the firm's profits / losses? Was this a wise decision? Explain.