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Total costs for Internet firms are dominated by high
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marginal costs.
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- Central Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery. Muffaletta Sold per Day Price (P) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC) Profit 0 $15 $12 1 14 18 2 13 20 3 12 21 4 11 23 5 10 26 6 9 30 7 8 35 8 7 42 9 6 52 10 5 78 Fill in the table What are the profit-maximizing price and quantity, and what…Direction: Solve the problems on the space provided after each number. Show your solutions. You can submit using messenger or using your VLE account. Take a photo of your answers if using messenger to submit. If using VLE, encode your answers and send as file. If profit is maximum at sales of 700 units, does the firm have no choice but to limit sales at this level? Explain your answer. A business firm produces and sells a particular product. Variable cost is P30/unit. Selling price is P40 per unit. Fixed cost is P60,000. What is the break-even quantity and break-even point? Show your solution. A manager makes the statement that output should be expanded as long as average revenue exceeds average cost. Does this strategy make sense? Explain. Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal output to be produced. Output (Q) TFC TVC TC MC TR MR Profit/Loss 0 500 0…A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has average revenue of $6, average total cost of $6, and fixed cost of $270. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 90 units.
- Four Seasons Brewery has a variety of costs. Label which cost is EXPLICIT and which cost is IMPLICIT. Vats owned by four seasons to store the beer- Building, which is rented, in which to brew- Water bought from the city-Refer to the table below. Quantity Cost (in dollars) Fixed Costs (in dollars) Total Costs (in dollars) Average Total Costs (in dollars per unit) Average Variable Costs (in dollars per unit) Marginal Costs (in dollars per unit) 0 0 40 40 - - - - - - 1 15 40 55 55 15 15 2 35 40 75 37.5 17.5 20 3 60 40 100 33.3 20 25 4 90 40 130 32.5 22.5 30 5 125 40 165 33 25 35 6 160 40 200 33.3 26.6 40 If this information were used to create a total cost graph, the curve should Question 6 options: begin at 40 on the vertical axis and slope upward. become steeper as quantity increases. become steeper due to diminishing returns. reflect all of the above.A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs are $ 50000. They will sell the CD's for $ 79 each. Let a be the number of CD's produced. Write the total cost C as a function of the number of CD's produced. C =$ Write the total revenue R as a function of the number of CD's produced. R=$ Write the total profit P as a function of the number of CD's produced. P=$ Find the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is Question Help: Video Submit Question
- Variable costs usually change as the firm alters the quantity of output produced. True FalseA company sells a product for $34 each. The variable costs are $16 per unit and fixed costs are $14,562 per month. a) Find the revenue function. TR = b) Find the cost function. TC = c) Calculate the number of units needed to be sold per month to break-even. units d) Calculate the revenue at the break-even (round off to the nearest cent). $The table below shows the monthly cost of producing vintage model cars for collectors. Instructions: Enter your answers as a whole number. Fill in the missing values for total fixed cost, total variable cost, and total cost in the table below. Vintage Model Car Production Costs Output Total Fixed Cost (dollars) Total Variable Cost (dollars) Total Cost (dollars) 0 $1,000 $0 $1,000 100 800 200 1,300 300 3,300 400 3,300
- The table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If the company’s fixed costs are $30, what is the marginal cost X? Quantity Variable Cost Fixed Cost Total Cost Average Variable Cost Average Total Cost Marginal Cost 0 0 $30 1 $10 $30 2 $25 $30 X 3 $45 $30 4 $70 $30 5 $100 $30 6 $135 $30 Group of answer choices $15 $55 $5When average cost decreases as output increases, Group of answer choices marginal cost is below average cost average variable cost is rising average fixed cost is rising marginal cost is above average costYou own AAA Audio/Video Repair. You make service calls to customers’ homes to repair their audio/video equipment such as television sets and home theater systems. Your fixed costs are $10,000 per year, and your variable costs for each service call are $20. If you charge $75 for each service call, how many service calls will you have to make in order to break even?