Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the stu- dent recreation center, which pay $6,000 per year. A fully equipped facility can be leased at a cost of $8,000 per year. Additional costs are $1,000 a year a. What are fixed costs? b. What are variable costs? c. What is the marginal cost?

Q: Imagine yourself running a pizza restaurant over a short term horizon. Think about the following…

A: The amount of all costs brought about by a firm in creating a specific degree of result.

Q: In the long run, fixed costs are

A: Total Cost: The total cost of a commodity refers to the sum of fixed costs (FC) and variable cost…

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A: We need to calculate average variable cost, marginal cost and average total cost to answer these…

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A: The Average fixed cost is constantly declining. The average variable cost curve is lower than the…

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A: There are various Cost/expenses being incurred by the firm depending on the nature of the firm and…

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A: *answer:

Q: You are interested in starting a coffee shop at the University. Provide examples with explanations…

A: The starting of a new coffee shop requires the building to operate, space to lay the seating…

Q: At level of output, average fixed costs = $20, average variable costs = $10 and total costs = $900.…

A: Average total cost = Average fixed cost + Average variable costAverage total cost = Total cost /…

Q: 35) What is the firm’s efficient scale?  A. the quantity of output that minimizes average total…

A: (35)  A firm's efficient scale implies the production of output such that it minimizes the average…

Q: The following table shows data for quantity (Q), variable cost (VC), and fixed cost (FC) for a ski…

A: Since you have posted multiple questions, will be answering only the first part.

Q: What are Fixed Costs?

A: A company mainly faces two type of costs known as fixed cost and variable cost. These two costs are…

Q: Three college students are considering operating a tutoring business in economics. This business…

A: Fixed costs are the costs paid for resources whose quantities cannot be changed in a fixed period.…

Q: In 1796, Gottfried Christoph Hartel, a German music publisher, calculated the cost of printing music…

A: Please find the answer below.   FIXED COST: The term fixed cost refers to a cost that does not…

Q: Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also…

A: The marginal cost curve refers to the curve that shows additional cost of production when the firm…

Q: At level of output, average fixed costs = $20, average variable costs $900. Given this information,…

A: Usually in the easy language we can call Average fixed cost as the cost which is gradually required…

Q: What are examples of fixed and variable costs in a fast food restaurant?

A: Total fixed cost (TFC)is defined as those cost which a firm must pay irrespective of its level of…

Q: Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) calculate Total…

A: Total cost is the total expenditure of the producer in the production process. The cost includes the…

Q: What happens to fixed cost as the quantity produced increases?

A: In the market, when a firm makes production activities, there are various costs incurred during this…

Q: Draw the marginal-cost and average-total-cost curves for a typical firm. Explain why the curves have…

A: Marginal cost: Marginal expense is the adjustment in the all-out cost that emerges when the amount…

Q: Given the quantity produced (Q), Total fixed cost (TFC) and Total Cost (TC), (1) calculate Total…

A: Total Cost (TC) is the sum of Total Variable Cost (TVC) and the Total Fixed Cost (TFC). Therefore,…

Q: Fixed costs can be defined as costs that

A: A fixed cost(FC) is the cost that does not change with the decrease or increase in the number of…

Q: Copy the table below into your answer booklet and fill in the missing figures: Output Total Cost…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: y has fixed costs of $10 per day and variable costs of $ 1 per loaf . Its oven can handle up to 50…

A: Total cost = Fixed Cost + Variable cost Average fixed cost = Fixed CostQuantity Average Variable…

Q: Government imposes higher tax on tobacco production. Which cost curves will be affected and why of…

A: When the government imposes a higher tax on tobacco production or the output. With this tax…

Q: Explain Fixed costs versus variable costs and give an example?

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

Q: discuss more about fixed and variable costs.

A: TC(Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: What are the fixed and variable costs of (a) a pizza shop, (b) an Internet service provider, (c) a…

A: There are various costs associated with the process of production and the main two categories of…

Q: The following incomplete table describes the costs faced by a firm as it produces an increasin,…

A: fixed cost is independent of output produced.

Q: Hi there can you please assist on the following question . Fill in the missing figures Output…

A: Marginal cost is the ratio of change in total cost to change in quantity. It means as quantity rises…

Q: Suppose a firm producing cell phones is operating such that marginal costs are much lower than…

A: The marginal cost of the firm is the cost it will incur by producing one additional unit of output.…

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A:

Q: With the aid of a diagram, explain the relationship between ‘marginal cost’ and ‘average total cost’…

A: The expenditure incurred on the factors of production for the production of the final good is known…

Q: Why do most fixed costs become variable costs in the long run?

A: Variable costs- Due to the sum of a product or service being generated, variable costs change. The…

Q: Explain average fixed cost (AFC)?

A: Costs are the sums of money spent by producers on various variables of production in order to…

Q: explain why the lower marginal cost firm can never produce the same as the high marginal cost firm

A: marginal cost is the cost of producing additional unit of product . and it helps to the firm to…

Q: This chapter discusses many types of costs:opportunity cost, total cost, fixed cost, variable…

A: Cost is the expense incurred when a good or service is produced.

Q: The following is a total cost curve. Sketch the corresponding marginal cost curve. If the price of…

A: ‘Marginal cost’: ‘Marginal cost’ is the change in ‘total cost’ in respect to change in per unit of…

Q: What two lines on a cost curve diagram intersect at the zero-profit point?

A: For a perfectly competitive firm, average cost curve and marginal revenue curve intersect each other…

Q: The difference between economic profit and accounting profit is?   Average cost Direct costs…

A: Cost is the expenditure incurred by firms on the production of goods and services. The cost can be…

Q: Marginal cost curve is _______  1) Straight line  2) U shaped

A: Marginal cost refers to the cost associated with generating one more unit of output. It is the cost…

Q: * CENGAGE MINDTAP Homework (Ch 07) On the following graph, plot Douglas Fur's average total cost…

A: *ANSWER :-

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: Marginal cost (MC) is the change in total cost or total variable cost per unit change in output.