Which of the costs discussed in the chapter is the most important when a firm is deciding how much to produce? Costs that are spent to improve the image of the firm. A firm will choose to increase output if it spends a large amount on advertising and brand image. Fixed costs because these costs are spent and cannot be changed in the time period under consideration. If fixed costs are higher, the firm will choose to produce more output. Variable costs because these costs change as output changes. If the firm wants to maximize profits, it will choose to produce a quantity where variable costs are minimized. Marginal cost because this cost shows the additional cost associated with producing one more unit of output. Firms will use this information to decide to produce more or less output.

Q: The Warren Watch Company sells watches for $27, fixed costs are $100,000, and variable costs are $14…

A: A variable cost is a corporate expense that changes in proportion to how much a company produces or…

Q: A firm's short-run average cost curve is U-shaped. Which of these conclusions can be reached…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: If an industry exhibits economies of scale, one larger firm may be able to produce goods at a lower…

A: The long-run average costs fall as more output is produced. Economies of scale is the idea that…

Q: Average Fixed Costs (AFC) is equal to A. Average Total Cost (ATC) - Average Variable Cost (AVC).…

A: The correct Option is (D) - All of the above

Q: Consider the following statements when answering this question: I. A firm's marginal cost curve does…

A: Marginal cost is the additional cost that occurs from the production of one additional unit of the…

Q: Factors that cause the short-run supply curve to change are factors that affect

A: In the short run supply can be able to change with limited resources.

Q: n the short run a firm can minimize costs by shutting down. minimize costs by going out of business.…

A: The firm will continue to produce in the short run as long as it is able to recover the variable…

Q: Suppose the imaginary company of Athena is a small, Raleigh-based American apparel manufacturer…

A: Fixed cost is the cost when the output level is zero. Marginal cost is the slope of the total cost.…

Q: Which of the following statements is true?   Accounting profit is always positive.…

A: The statement "Accounting profit is greater than or equal to economic profit" is true.…

Q: a profit-maximizing firm finds that, at its current level of production, MR > MC, it will *…

A: marginal revenue= change in total revenue/change in quantity Marginal cost= change in total…

Q: Identify the economies of scale where the producer operates. Show cost curves of the firm…

A: The economies of scale means when the level of production or output is raised, the average cost of…

Q: Souvlaki Taverna is one of many restaurants in Athens, Greece which sell Souvlaki kebabs. All…

A: In economics, a cost curve is a graph of the expenses of production as a function of the total…

Q: The long-run average cost curve for an industry is represented in the following graph. Add short-run…

A: The long-run average cost (LRAC) curve, which has a U-shape, plots all potential production levels…

Q: Using the following table, for each price level, calculate the optimal quantity of units for the…

A: A competitive market is a structure where no single consumer or producer has the ability to…

Q: 1) Consider an independent pizza shop. List at least 5 explicit costs. 2) Consider an independent…

A: Explicit cost is the one that is actually incurred by a firm. It includes the out-of-pocket…

Q: part 1. Leave 'r' and 'w' as constants. Solve the cost minimization problem to find L*(q) and K*(q).

A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…

Q: A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is…

A: A firm will produce in short run if the P > AVC  And a firm will produce in long run if P >…

Q: Refer to the figure below. If the firm is producing the level of output that maximizes profit, its…

A: Answer:  To find= total variable cost at the equilibrium. Equilibrium is a point where Marginal cost…

Q: The figure below displays the short-run marginal cost and short-run average cost curves for a firm.…

A: In short run ,  In perfect competition , firm will produce where P = MC  P is the price  MC is the…

Q: e) In the following diagram of cost curves, how many short runs have been created? State and explain…

A: Average short run curve: It refers to the curve which is a U shaped curve. It decreases the average…

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: The relationship between the firm's average variable, average total, and marginal cost curves above:…

A: The market is a perfectly competitive market structure, due to which the firm has a horizontal…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: rue? Marginal cost is equal to marginal revenue. O This is the quantity a firm would choose to…

A: AVC=TVC/Q MC= change in TC/ change in Q

Q: Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs…

A: Average total cost is the total production cost divided by the total quantity produced.

Q: Using price (P), quantity (q), and average total cost (ATC), define profit rate (per unit profit),…

A: We all know that the formula for average total cost is:-  The ratio of total cost and quantity which…

Q: Using the Diagram above, answer the following questions: b). Suppose this firm produces 15 units of…

A: Variable cost is the cost that is closely associated with the production activity. That is, it moves…

Q: If firms have long-run average cost curves with a long, flat section, larger firms have a cost…

A: A long-run average cost refers to the average cost when all the factors of the production are…

Q: he two side by side graphs are for two firms that between them supply all the original grown…

A: A perfectly competitive firm supplies the quantity of output at which price equals MC. The MC should…

Q: What is the firm’s total variable cost at this level of output?   $    e. What is the firm’s…

A: A shutdown stage is a level of functions at which a company experiences no profit for continuing…

Q: A firm's variable cost is VC(Q)=4Q2. All of the fixed cost is sunk. Suppose the market price is $24.…

A: 1. C) 1 and 2 only

Q: An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15Q2 +…

A: Hello, thank you for the question. Since there are multiple sub-part questions posted here, only the…

Q: Let's consider a company that produces a good Z, in a perfectly competitive market. The expression…

A: Total cost: It represents the total cost incurred by a firm in producing a certain quantity (q) of…

Q: onsider the perfectly competitive market for dress shirts. The following graph shows the marginal…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: firm's profit function is z(q) = R(q) – C(q) = 140q - (410 + 20q + 10q). What is the positive output…

A: Profit is the difference between total revenue and total cost. Total cost is the sum of Fixed and…

Q: Demand in an industry is expected to decrease permanently. Before the decrease in demand the…

A: A perfectly competitive market is one that has a large number of buyers and sellers, firms selles…

Q: d) What is level of output corresponding to the minimum level of Ron's average variable cost curve?…

A: The short-run total cost of Ron's window washing services: The market for window washing services is…

Q: Farmer Brown grows blueberries. The average total cost, average variable cost, and marginal cost of…

A: Marginal cost curve is U shaped, it intersects average total cost and average variable cost at their…

Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…

A: please find the answer below.

Q: How do you derive the marginal cost (MC) curve of a firm? b) How are average variable cost (AVC) and…

A: Marginal cost is the additional cost that is incurred in order to produce an additional unit of an…

Q: 3. XYZ corporation produces widgets. Its short-run marginal cost curve is given by MC (q) = 10 – 5q…

A: Given information MC=10-5q+q^2 Marginal cost is the additional cost incurred by producing additional…

Q: At a university faculty meeting in 2012, a proposal was made to increase the housing benefits for…

A: Faculty is important to the success of any university or institution. Increase in the advantages in…