ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- At a current level of production of 10,000 per day in its Garner plant, the marginal cost of producing a Jess Jones Sausage is 50 cents. If the average cost of production is 40 cents, at that level of production, Select one: a. the average cost of production will increase if output is increased above 10,000 sausages per day. O b. the average cost of production will remain 40 cents if output is increased above 10,000 sausages per day. c. the average cost of production will decline if output is increased above 10,000 sausages per day. O d. the average fixed cost of production will increase if output is increased above 10,000 sausages per day.arrow_forwardThe table below shows the total cost for producing different amounts of computers. Use the given information to find the Marginal Cost of producing each unit. Marginal Cost Quantity Total Cost 0 0 1 2 3 لی 4 5 31 50 63 71 74 9. 9.arrow_forwardUse the figure below to answer the following questions. Average cost (dollars per sweater) 12 H Select one: OA. Plant A OB. Plant B O C. Plant C O D. Plant D O E. none of the above 10 8 6 4 2 0 5 10 ATCA ATCB ATCC ATCD 15 20 25 30 Output (sweaters per day) Figure 11.4.2 Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?arrow_forward
- Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 4 5 6 7 8 Dave Guitars 25 20 15 10 5 0 Tubas 0 1 2 3 4 5 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 0 0 2 1 2 4 3 6 4 8 5 10 6 Eddie and Dave both produce guitars and tubas. They produce a given amount of each per month as seen in the tables above. Given the production possibilities curves of each individual above, answer the following: Who has the comparative advantage in the production of tubas? Eddie, because his opportunity cost of producing a tuba is 0.75 guitars tubas compared to Dave's opportunity cost of producing a tuba guitar of 0.25 guitars Dave, because his opportunity cost of producing a tubas is 5 guitars compared to Eddie's opportunity cost of producing a tuba of 4 guitars Dave, because he is able to produce a lower number of tubas compared to Eddie Dave, because he is able to produce a lower number of guitars compared to Eddie Eddie, because his opportunity cost of producing a tuba is 4 guitars compared to Dave's…arrow_forward22. Suppose an artist put on 5 concerts in Korea last month for an average total cost of $1 million each. It considered doing 6 concerts for an average total cost of $0.9 million but decided not to. What would have been the marginal cost of the 6th concert? $_ millionarrow_forwardHand written solutions are strictly prohibitedarrow_forward
- The table below shows average cost data for three different-sized plants—1, 2, and 3—which are the only three sizes possible. Output 100 Plant 1 $18 15 Plant 2 $14 11 200 300 11 7 400 10 500 14 8 9 Plant 3 $10 11 9 10 11 a. In what plant size is MES achieved? (Click to select) b. What is the economic capacity for plant 2? Economic capacity: c. What is the right-size plant to produce an output of 300? ✓ (Click to select) Plant 1 Plant 3 Plant 2arrow_forward2arrow_forwardRefer to the information provided in Table below to answer the question that follow. Number of Earrings TVC MC AVC TFC TC AFC ATC 0 100 1 2 3 4 5 270 50 O Select one: 46.67 300 Refer to Table If Sherry produces one pair of earrings, her total variable costs are 95 a. indeterminate from this information. b. $50. c. $100. d. $150.arrow_forward
- For a restaurant that sells hamburgers, which of the following costs would be a variable cost? O The cost of the steak that is used in producing the hamburgers. O The cost of promoting itself on social media each year. O The fines the restaurant pays for violation of recycling laws every year. O The rent that the restaurant pays every year. MacBook A esc F1 F2 F3 000 FA F5 F6 @ 2$ 4 Q W E tab Y S D F G caps lock mift C V く ヒ # 3 A.arrow_forwardThe LEGO Architecture Collection includes three items: the White House Model Building Kit (at $80 per kit), the U.S. Capitol Building Kit (at $40 per kit), and the Mar-a-LEGO Club Building Kit (at $20.24 per kit; empty classified document folders are extra). Total costs of production for different quantities of each item are given below. a. WHITE HOUSE Output per day 0 100 200 300 400 500 600 White House U.S. Capitol Total cost Mar-a-LEGO 1600 5000 11000 18000 27000 40000 55000 U.S. CAPITOL Output per day 0 10 20 30 40 50 60 Total cost 100 400 750 1120 1510 1920 2350 MAR-A-LEGO Output per day 0 100 200 300 400 500 600 If LEGO's goal is profit maximization and the cost of production schedules cannot be altered, what quantity of each item should be produced in the short run? Total cost 2000 3500 5500 8000 11000 14200 15000 b. Above what market price (to the nearest penny) should LEGO begin producing Mar-a-LEGO kits? That is, what is the "shutdown price" for Mar-a-LEGO kits?arrow_forwardRefer to the information provided in Table 8.2 below to answer the question(s) that follow. Show your computation. Table 8.2 Number of Earrings TVC MC AVC TFC TC AFC ATC 100 1 50 2 95 3 46.67 4 300 270 1) If Sherry produces zero earrings, her total fixed costs are 2) If Sherry produces one pair of earrings, her total variable costs are 3) If Sherry produces two pairs of earrings, her marginal cost isarrow_forward
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