Q: Universal’s variable cost to rent a car is $15. Assume the fleet size is fixed at 21,666. How many…
A: Given information Universal's variable cost to rent a car is $15 Fleet size is fixed at 21,666 The…
Q: How does a cost behave in response to a change in activity? Give an example?
A: Cost also changes with the change in the activity. There are two types of costs- fixed costs and…
Q: Modified True or False: State whether each statement is true or false. If the statement is false,…
A: Optimal scale of plant is the scale of plant where costs are minimized. As the word optimal suggests…
Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…
A: Economies of scale means reducing production cost by increasing output at a large scale.
Q: Calculate the Marginal Cost at Q 200? Calculate the Marginal Cost at Q 300? Calculate the Average…
A: the marginal cost is the change in the total cost that arises when the quantity produced is…
Q: How does optimization blow up the myth about profit being a result of a mere increase-decrease…
A: A technique for improvement of efficiency of products, processes, or other entities through…
Q: charlie is running a coffe shop and are currently selling 200 coffees. it cost them 2,0000 to hire a…
A: Fixed cost is the part of total cost that does not depend on output produced. It remains fixed even…
Q: At Dana's dairy farm, the average total cost of producing 19 liters of milk is $10, while the…
A:
Q: customers there while you golf. Why do you think a miniature golf course would stay open during the…
A: *answer:
Q: Let c(x) be the cost of producing a product of x units. Given that c(x) follows the experience cost…
A: Experience curve is the known as Henderson's law which states that more the firm produces , firm…
Q: for these two graphs answer the following question what is the fixed cost?
A: Cost refers to the expenditure incurred by the producer for producing a given level of output. There…
Q: Define and explain the difference between economics of scale and economies of scope. Include an…
A: Definition: Economies of scale are cost-saving strategies in a production process by increasing the…
Q: total revenue (TR) and total variable cost (VC) if the price is equal to the AVC
A: Relationship between TR and TVC 1. TR represents sum of MR and TVC represents Sum of MC Gross…
Q: What is Cost Analysis?
A: The correct answer is given in the second step.
Q: Jill Johnson says the following: "I am currently producing 10,000 pizzas per month at a total cost…
A: Output1=Y1=10,000 pizzas Total Cost1=TC1=$70,000 Output2=Y2=10,001 pizzas Total Cost2=TC2=$70,040…
Q: What does average fixed cost fall with increase in output?
A: Fixed cost per unit of output is known as average fixed cost. Because the same amount of fixed costs…
Q: Suppose Honda's total cost of producing 4cars is $225000and its total cost of producing 5cars is…
A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000
Q: What is fixed cost? How would you calculate Fixed cost in a graph
A: Total Cost has two components in the short run 1)Total Fixed Cost and 2)Total Variable Cost . Each…
Q: A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total…
A: In business, the average total cost, or ATC, is the sum of all product costs divided by the volume…
Q: If Q = 2LK2 , what happens to average cost as the firm expands (produces more)? a.AC reaches its…
A: Cobb-Douglas production function of Q=ALa Kb with a+b>1 shows increasing returns to scale.
Q: . If economic profit equals accounting profit, what do implicitcosts equal?
A: Basics:- Economic Profit = Revenue - Explicit Cost - Implicit Cost Accounting Profit = Revenue…
Q: Assume that the marginal cost of production is less than the average variable cost. Can you…
A: Average Variable Cost refers to the variable cost per unit of output. It can be calculated by…
Q: Give two examples of variable costs
A: Variable costs are those costs which vary with the production level and thus gets changed as the…
Q: total revenue (TR) and total variable cost
A:
Q: Starbucks is hoping to make use of its excess restaurant capacity in the evenings by experimenting…
A: (Q) Starbucks is hoping to make use of its excess restaurant capacity in the evenings by…
Q: Consider the table below that describes the costs associated with producing a good (Q). Q Total…
A: Marginal cost of Q is equals to TC (Q) - TC(Q-1) So, MC(Q=2) = TC(Q=2) - TC(Q=1)
Q: Output Average Cost ( at that output level) Marginal Cost of that Car 9,999 ? $ 12,000 10,000 $…
A: The extra cost incurred in the development of one more unit of a good or service is known as…
Q: What is Pseudo Scale Line? How optimization is attained through fixed inputs under this line?
A: The term production process means the physical relationship between inputs and the resulting output.…
Q: Expalin the law of diminishing returns or diseconomies of scales ?
A: In an economy, the law of diminishing returns and diseconomies of scale are two different concepts,…
Q: you assume that a firm has a U-shaped average cost curve, why would large and small firms have…
A: The economies and diseconomies of scale lead to the U shaped average cost curve.
Q: Why should sunk costs be ignored for decision making? Give an example of why it makes sense to…
A: Sunk cost are those cost which have been caused and the sum spent can not be recovered.since the…
Q: Complete the third column of the following table by calculating the marginal cost per dozen pizzas…
A: Marginal Cost using Total Cost= Change in Total Cost/Change in Quantity Marginal Cost using Variable…
Q: In the short run, a firm's total costs of producing 100 units of output equal $10,000. If it…
A: The firms, and businesses are the entities who are involved in the production activities, and the…
Q: If output is produced according to Q = 4LK, the price of K is $10, and the price of L is $40, then…
A: Profit is maximized when firm produces output at a level where marginal rate of technical…
Q: If production increases, what happens to average variable cost (AVC), does it increase only,…
A:
Q: if economic profit equals accounting profit, what do implicit cost equal?
A: (Q) If economic profit equals accounting profit, what do implicit cost equal? There are two types of…
Q: A firm has the following average total cost curves: Quantity ATC11 ATC22 ATC33 ATC44 1 100 150 50…
A: Answer-
Q: What economic principle explains why average variable costs and marginal costs initialy decrease as…
A: A U-shaped curve represents the average variable cost function. Initially, as output increases, the…
Q: Why is the Average Variable cost U-shaped
A: Costs are the expenses that firms incur in the production of goods and services. A firm typically…
Q: How does fixed cost affect marginal cost? Why is this relationship important?
A: Fixed cost is the cost which does not change with the change in the output. Marginal cost is the…
Q: Is fixed cost always smaller than total cost ?
A: The question talks about the two terms i.e., fixed cost and total cost.
Q: What is relationship between total revenue (TR) and total variable cost (VC) if the price is between…
A: Total revenue refers to the revenue of a firm through its total sale of goods. The cost incurred in…
Q: Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the…
A: Answer to the question is as follows:
Q: For the operator of a movie theater, the marginal cost (MC) of admitting one more person to the…
A: Marginal cost is an additional cost incurred by the producer in order to provide additional goods or…
Q: Explain the logic behind the economist's quip that " there is no such thing as a free lunch."
A: Producing goods and services involves cost. Without spending anything it is not possible to produce…
What is optimization? How does it blow up the myth about profit being a result of a mere increasedecrease interplay between cost and revenue?
How much should a firm sell of a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision?
Step by step
Solved in 3 steps
- a. What is optimization? How does it blow up the myth about profit being a result of a mere increasedecrease interplay between cost and revenue? b. How much should a firm sell of a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision? c. “More Sales, More Profits”. Do you agree? Explain your answerHow does optimization blow up the myth about profit being a result of a mere increase-decrease interplay between cost and revenue?Is this graph a valid set of cost curves? True/False
- How does a cost behave in response to a change in activity? Give an example?What effect might a decrease in the demand for high definition televisions have on the short-run average total costcurve for this product?Ebba Kantzen says the following: "I am currently producing 10,000 pizzas per month at a total cost of $50,000. If I produce 10,001 pizzas, my total cost will rise to $50,011. Therefore, my marginal cost of producing pizzas must be increasing." ( 1.) Using the point drawing tool, indicate the point of marginal cost. Label this point "Marginal cost." 2.) Using the point drawing tool, indicate the point of average total cost. Label this point "Average total cost." Carefully follow the instructions above, and only draw the required objects. Costs(dollars per pizza) (5.95,0) MC Quantity (pizzas per month) points ATC
- for these two graphs answer the following question what is the fixed cost?why is average product low for a goodHow would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect the long-run average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
- in your own personal life, what are some fixed and variable costs you have?Use the information in the graph to the right to find the values for the following at an output level of 45. 100- The marginal cost is $ 18 . (Round your response to the nearest dollar.) MC The total cost is $ (Round your response to the nearest dollar.) АТС AVC 43 30 18 45 Quantity of output .... CostWhat is Pseudo Scale Line? How optimization is attained through fixed inputs under this line?
