What do a firm's opportunity costs of production amount to? Question 13 options: explicit costs, implicit costs, and total revenue combined implicit costs only explicit costs and implicit costs combined explicit costs only

What do a firm's opportunity costs of production amount to? Question 13 options: explicit costs, implicit costs, and total revenue combined implicit costs only explicit costs and implicit costs combined explicit costs only

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What do a firm's opportunity costs of production amount to?

Question 13 options:

	explicit costs, implicit costs, and total revenue combined
	implicit costs only
	explicit costs and implicit costs combined
	explicit costs only

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2. A student foregoes her annual summer job (paying in total $3,200) in order to operate a sandwich shop. Rent and other fixed costs are $1,500 for the entire season. Variable cost per sandwich is $0.50. a) What is the opportunity cost for the student? Explain. b) Derive the expressions for the total accounting cost and total economic cost. c) Suppose that the sandwich shop generates a positive total accounting profit of $2,000. Accounting for total economic costs, should the student operate the shop? Explain.
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If marginal cost is less than the average variable cost and output increases, average total cost _______ and average variable cost ________. OPTIONS: (i) decreases, increases (ii) increases, decreases (iii) increases, increases (iv) decreases, decreases
Question 3 A company produces three products which must be processed through three departments. The following table summarizes the labor hours and raw material requirements required per unit each department. Each month there are 1300, 4700 pounds of raw material available. If the combined monthly production for the three departments should equal 400 units. Determine whether there is a combination of the three products which could be produced monthly so as to consume full monthly labor availabilities and raw material of all departments. Product 1 Product 2 Product 3 Labor-hours/unit 5 4 Pounds of raw material / unit 15 10 12 Question 4 The supply and demand functions for a product are 4s = p² – 300 and qa = p² – 30p + 2200. Determine the market equilibrium price and quantity.
Question 4.4. Which expression is another way of saying "marginal cost"? Scarce resources Additional cost Opportunity cost Unrecognized cost
(a) Explain intuitively why a firm's average cost curves are U-shaped and why does its average variable cost curve achieve its minimum at a lower level of output than the average total cost curve? (b) You are given the following data on output and inputs for 10 production periods: TIME OUTPUT CAPITAL (K) LABOR (L) 1 225 12 20 240 14 22 3 278 10 24 4 212 14 18 5 205 12 20 6 297 16 24 7 242 16 20 8 155 10 14 212 8 20 10 180 8 14 Estimate the parameters (A, a, ß ) of Cobb-Douglas production function using the Least-squares (OLS) regression method. [ Assume Q = AK“ L® ]. Use the estimated parameters to determine: Returns to Scale, Equations for the marginal product of labor and Capital. Calculate the marginal products of capital and labor for the input combinations: K = 10, L = 25. Make a comment based on your findings.
Question: The costs which vary as the level of output varies are called: a) Prime costs b) Indirect costs c) Real costs d) None of these
Which of the following statements is FALSE? Question 6 options: Marginal cost equals average total cost when the average total cost is at its minimum Marginal cost equals average variable cost when the average variable cost is at its minimum Marginal cost equals average fixed cost when the average fixed cost is at its minimum
Q.4 Marginal Cost is closely related to: (a) Total variable cost (b) Total cost (c) Total fixed cost (d) All of the above
Question 10 TTT Quantity of Output Fixed Costs Variable Costs 15 2 15 12 4 15 23 15 38 8 15 46 10 15 70 Based on the above table, what is the marginal cost of producing the 6th unit? 8. 7.5 10.5 5.5
Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages, the ATC and AVC curves will shift: upward to the left upward to the right downward to the left downward to the right