Answered: Why does a firm care about economic…

Why does a firm care about economic capacity? O a. Output can't increase O b. Cost are maximized here O c. Point where Taxes are minimized O d. It's where their per unit cost are minimized

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: When a firm is earning normal profit from the production of a good, it is true that O total revenues…

A: The firms, businesses, or producers are those who are involved in the production process of goods,…

Q: 16- microeconomics is the study of the behavior of individual, small, isolated and diss- aggregated…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…

Q: G) Which movement could be caused by an application of new machine for harvesting. * O H to A O A to…

A: In a competitive market, there exists a large number of buyers and sellers of the good in the market…

Q: All of the following are true regarding transfer prices except which one? OA. Transfer prices can…

A: Transfer prices refer to the prices set for goods, services, or assets transferred between different…

Q: The meaning of constant returns to scale is that as all inputs are increased: a. Average total cost…

A: The production function shows the relationship between the inputs used and output produced. The…

Q: The Wonderful local hospital in the Republic of Drugonia has an index of economic efficiency in…

A: Allocative Efficiency refers to the situation where all the resources are distributed in such a way…

Q: The expenses incurred on the variable factors are called O a. Fixed cost O b. Variable cost O c.…

A: Economics is a discipline that is associated with the economic principles of production,…

Q: NOTE: pls explain what’s on the image attached

A: Crop insurance aims to help small farmers in the event of crop loss. The feasibility of crop…

Q: Which statement is correct? Choose an answer O 1. The average fixed costs increase with the…

A: In long term, the price must be higher than the average cost that means contribution margin must be…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1: Define what the production possibilities curve isThe production possibilities curve (PPC) is…

Q: Which of the following statements about productive efficiency is true? X: It means that an economy…

A: The point where the firms are known to be operating at their respective maximum capacities is known…

Q: |75 Su A

A: An economic surplus is when we have more of something in the economy compare to people demand.…

Q: Your town is littered with discarded cans and bottles. The town council passes a law requiring all…

A: When merchants pay 10 cent per bottle then it become incentives for customers to return the bottles…

Q: According to Little's Law, which statement is correct for a stable process: O a. For a given…

A: Consider the Little's Law: L = λ x W Where, L = L can be considered as the quantity of the average…

Q: Which of the following would shift an economy's production possibilities curve to the left? Select…

A: Shift in production possibility curve. Factors that modify an economy's output, such as developments…

Q: Fixed Cost Variable Cost Average Variable Marginal Cost Quantity Total Average Total Cost Average…

A: A firm has to bear many cost to start a production process. Total cost is the sum of all costs…

Q: Briefly explain (b) Why Law of diminishing return is more applicable in agriculture sector?

A: In the production process, different factors are used to produce the final output. Each factor has…

Q: Which of the following are two components of the opportunity cost of using capital already owned by…

A: Opportunity cost represents the potential benefits that one has to give up while choosing an…

Q: The Bluebird Factory reported $1,000,000 in total revenues and $60,000 total variable costs during…

A: Given: The total revenues are = $1,000,000 The total variable costs are = $60,000 To Find: The…

Q: The figure below shows cost and revenue. $(thousands) 400 300 200 100 5 10 C(q) 15 R(q) q…

A: Total revenue and total costs: Total revenue is the total value of the commodities produced and sold…

Q: Material Requirements Plan (MRP) is an input to- O a. Inventory Plan O b. Master Production Schedule…

A: The master production schedule (MPS) is a plan for the production of finished goods. It takes into…

Q: QUESTION 7 Assume the price of corn is $4.00 per bushel, no matter how much you produce, and…

A: Marginal input cost refers to the additional cost incurred when producing one more unit or…

Q: Catriona's botique sold 100 pieces of bookmarks. Her total production cost is 5 pesos including an…

A: Selling price of a bookmark is 10 pesos. 100 pieces of bookmark has been sold at a price of 10 pesos…

Q: Which of the following is an implicit cost? i. wages paid to workers ii. the normal profit iii. the…

A: Implicit cost is that cost in which there is no exchange of cash and is not recorded for accounting…

Q: Refer to the diagram, representing Slippery Slope Oil Company. What is the user cost of extracting a…

A: Given the price per Barrel = $70 Given the EC when quantity zero = $10

Q: Figure 4.2 O there is waste. O it is very difficult and very expensive to increase output once the…

A: TC represents "Total Cost." A financial statistic called total cost is used in business and…

Q: 1. Consider the production functions for good X and good Y: X = K? +L ; Y = 20/KL A. Show and…

Q: Al its current short-run evel of production, a irm's average variable costs equal $30 per unit, nd…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: An ag firm is looking to produce 30 units of output. If the firm were to operate at the least-cost…

A: Required Q=30, w=10 r =50

Q: A tuition agency hires tutors to teach students. The following table displays how total output…

A: The variable cost per tutor = $50 The total fixed cost of tuition agency = $500 Suppose the number…

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: Technical efficiency means O how much output can be produced per unit of productive input or…

A: Technical efficiency means the relationship between resource inputs and outputs. Technical…

Q: Q5. Interpret and compute the required costs of XYZ Industry with the help of perfect formulas.…

A: The cost is the money that is spent on producing something.

Q: Implicit and explicit costs are different in that A. explicit costs are O B. implicit costs are O C.…

A: Implicit and explicit costs are different in that the former refers to non-expenditure costs and the…

Q: The $8.4 billion of costs arising from using less coal to produce electricity O A. include the loss…

A: Answer 1 - The more than $34 billions of benefits from using less coal to produce electricity…

Q: Refer to the figure below. What can we conclude from this figure? Graph of Per Unit Costs What is…

A: The creation of additional output due to the result of additional input being placed into the…

Q: Economic costs of production differ from accounting costs in that Select one: a. economic costs…

A: There are many associated costs of production in the process of production. These costs can be of…

Q: Answer the following Questions. Include referencing where additional sources have been used a. Why…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: International Production You have two factories that produce identical products (lets say plastic…

A: Definition: The term perfect competition alludes to a hypothetical market structure. In a perfectly…

Q: 1. The transportation cost is $100 per ton per mile. A factory is producing 10 tons of output per…

A: Given the transportation cost = $100 per ton per mileTotal output = 10 tonsRent = $5000Distance = 3…

Q: Many businesses taco increasing marginal costs because___ O A. in order to increase output, you…

A: Marginal cost is the cost of producing an additional unit of output. Average total cost is the…

Q: Marginal cost is given by 12 e0.5Q. Fixed cost is 56. What is the total cost? O a. 6e0.5Q + 56 O b.…

A: Given MC = 12e0.5Q FC = 56

Q: To say that markets are "efficient" implies that Select one: firms produce the amount and type of…

A: A marketplace location is where consumers and sellers meet each other to trade goods and services.…

Q: In economics, the term O A. optimal O B. marginal O C. allocative O D. equity means "additional"…

A: Economics:It is a subject matter that focuses on the rational management of scarce resources that…

Q: Question 4 How many metric tons of berries would Greeh Berries Farm produce in order to Maximize…

A: Green Garden Berry farms (quantity) Quantity of farmworkers TVC TFC TC MC 1 3 45 20 65 - 2 5 75…

Q: Which action would decrease per unit costs? O a. Decreasing output when experiencing diseconomies of…

A: Economies of scale is when the increase in output decreases the long run average cost.Diseconomies…

Q: QUESTION 18 The law of diminishing returns indicates that O D. beyond some point, the extra utility…

A: Marginal utility refers to extra benefits that are gained bythe consumer from consuming a particular…

Q: How does a lump sum tax affect the fixed costs and variable costs of a producer? Select one: O a. A…

A: Variable costs and fixed costs together sum up to obtain total costs.

Question

Why does a firm care about economic capacity?
O a. Output can't increase
O b. Cost are maximized here
O c. Point where Taxes are minimized
O d. It's where their per unit cost are minimized

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Economies of scale in production and sale is one of the sources of possible... Select one: O a. Economic Constraints O b. None of the mentioned options c. Economies of scope O d. Exit barriers
The total cost of Mr. Plow, a snow-removal business, is given in the table below. Quantity adriveways cleared) Abbreviation Formula: Total Revenue TR Total Cost TC $0 $25 20 30 40 50 60 70 80 34 41 46 49 51 54 60 70 95 145 10 100 What is the total profit of cleaning five driveways if the price Mr. Plow can charge is $10 per driveway? s 01/21 VIEW sOLUTION O OF 21QUESTIONS COMPLETED 28 MacBook Pro 59
69 O Completed 17 out of 20 Question 7 of 20 Because P> MR, which equation applies to the value of a firm's marginal product? O VMPL = MRPL O VMPL > MRPL O MRPL = VMPL O VMPL < MRPL LAPTOP LOGIN acer r USERNAME: student PASSWORD: Broward1 TravelMate B F8 F10 F11 95
Solve this economic it early. Not copy paste
Question 6 A production function defines the output that can be produced: O A. as technology changes over time. B. if the firm is technically efficient. O C. for the average firm. O D. in a given time period if no additional inputs are hired. O E. at the lowest cost, given the inputs available.
How does tax affect a firm's fixed, marginal and average costs? 1. When firm must pay lump sum tax (which is a fixed sum, independent of whether it produces any output): • fixed cost of production will remain the same • marginal cost of production will increase · average cost of production will increase 2. When firm must pay a tax proportional to the number of items it produces: • fixed cost of production will [Select ] • marginal cost of production will [ Select] · average cost of production will [ Select ]
No written by hand solution
Suppose a fim is producing 400 units of output, incurring a total cost of $650,000 and total fied cost of $75,000. tcan be conduded that erage veriable cot O A. $1438. OB. $1625. OC. $2000. O D. $188. OE $1813.
A Share Zoom TVC TC AVC MC 0. 15 23 30 Answer the following questions:
Kindly assist on question 1 and 2 1The difference between zero accounting profit and zero economic profit is that. a) an economic profit of zero indicates a fair return because it includes the opportunity cost of a firms capital. b) an economic profit zero indicates unacceptable rate of return because it does not include the opportunity cost of a firms capital. c) an economic profit of zero indicates more than a fair return because it includes opportunity cost and explicit cost. d) an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firms capital. 2.If a corporation is sued and losses the lawsuit, it's liability to pay. a) is imposed on all stockholders, personally b) is imposed only on the corporate CEO and the board of directors. C) its limited to the assets held in the corporations name. d) is imposed on the bondholders of the corporation
. What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From ___ to ____g. Over what range of the variable input usage do decreasing marginal returns exist?From ___ to ___h. Over what range of input usage do negative marginal returns exist?From ___ to ___ . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From to g. Over what range of the…
Which of the following statements are TRUE? (a) (b) Capital (K) 20 16- 12 8- 4 T T 4 8 10 12 16 20 24 28 I and III I and IV 9 = 20 III and IV 9 = 50 O II and III Labor (L) Capital (K) 20 16- 12 8 6 4 9 = 35 I. Panel (a) illustrates constant returns to scale II. Panel (b) illustrates decreasing returns to scale III. Panel (a) illustrates increasing returns to scale IV. Panel (b) illustrates constant returns to scale 9 = 70 T T T T 4 8 10 12 16 20 24 28 Labor (L)