Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 20APA
(a)
To determine
The reason for hiring firms for task completion.
(b)
To determine
The roles of transactions’ costs, economies of scale, economies of scope, and economies of team production in the design, manufacture, and marketing of the product.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Douglas Fur is a small manufacturer of fake-fur boots in Ottawa. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 0 60 — — 1 160 2 220 3 270 4 340 5 450 6 630 On the following graph, plot Douglas Fur's average-total-cost (ATC) curve using the green points (triangle symbol). Next, plot its average-variable-cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal-cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $160, so you should start your ATC curve by placing a green point at (1, 160). For MC, plot the points between the integers; for example, the MC of increasing…
Douglas Fur is a small manufacturer of fake-fur boots in Philadelphia. The following table shows the company's total cost of production at various
production quantities.
Fill in the remaining cells of the following table.
Quantity
(Pairs)
Total Cost
Marginal Cost
Fixed Cost
Variable Cost
Average Variable Cost
Average Total Cost
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars per pair)
(Dollars per pair)
60
1
155
220
255
300
350
450
10:15
Various measures of cost
Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company’s total cost of production at various production quantities.
Fill in the remaining cells of the following table.
Quantity
Total Cost
Marginal Cost
Fixed Cost
Variable Cost
Average Variable Cost
Average Total Cost
(Pairs)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars per pair)
(Dollars per pair)
0
120
—
—
1
200
2
240
3
285
4
340
5
425
6
540
Chapter 10 Solutions
Macroeconomics
Ch. 10.1 - Prob. 1RQCh. 10.1 - Prob. 2RQCh. 10.1 - Prob. 3RQCh. 10.1 - Prob. 4RQCh. 10.1 - Prob. 5RQCh. 10.2 - Prob. 1RQCh. 10.2 - Prob. 2RQCh. 10.2 - Prob. 3RQCh. 10.2 - Prob. 4RQCh. 10.3 - Prob. 1RQ
Ch. 10.3 - Prob. 2RQCh. 10.3 - Prob. 3RQCh. 10.4 - Prob. 1RQCh. 10.4 - Prob. 2RQCh. 10.4 - Prob. 3RQCh. 10.4 - Prob. 4RQCh. 10.5 - Prob. 1RQCh. 10.5 - Prob. 2RQCh. 10.5 - Prob. 3RQCh. 10 - Prob. 1SPACh. 10 - Prob. 2SPACh. 10 - Prob. 3SPACh. 10 - Prob. 4SPACh. 10 - Prob. 5SPACh. 10 - Prob. 6SPACh. 10 - Prob. 7SPACh. 10 - Prob. 8APACh. 10 - Prob. 9APACh. 10 - Prob. 10APACh. 10 - Prob. 11APACh. 10 - Prob. 12APACh. 10 - Prob. 13APACh. 10 - Technological and Economic Efficiency Use the...Ch. 10 - Prob. 15APACh. 10 - Prob. 16APACh. 10 - Prob. 17APACh. 10 - Prob. 18APACh. 10 - Prob. 19APACh. 10 - Prob. 20APACh. 10 - Prob. 21APACh. 10 - Prob. 22APACh. 10 - Prob. 23APA
Knowledge Booster
Similar questions
- Many films in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?arrow_forwardCompute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.arrow_forwardFind the value of A. Quantity Total Cost $5,000 Fixed Cost Variable Cost Average Total Cost Average Fixed Cost Average Variable Cost $1,000 $1,000 $4,000| $7000 10 25 8000 A 40 11300 55 15050 70 19700 $8 $200 $280 $320arrow_forward
- Douglas Fur is a small manufacturer of fake-fur boots in New York City. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Variable Cost Average Variable Cost Average Total Cost Quantity Total Cost Marginal Cost Fixed Cost (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) (Pairs) (Dollars) 120 1 200 240 285 4 340 425 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers: For example, the MC of…arrow_forwardQuantity of Labor (workers) Total Product (units per hour) 0 12 34 56 0 259 151817 The table above shows the total product schedule for The X Firm. Increasing marginal returns occur until the worker because A) 4th; the average product of labor is also increasing B) 4th; the marginal product of the 4th worker exceeds the 3rd worker, but not the 5th worker C) 3rd; the average product of labor is also increasing D) 5th; output declines with the 6th worker E) 5th; output is maximizedarrow_forwardQ9 ABC is a small business producing instructional modules for disabled children in public schools. The modules produced by ABC are not differentiated and the market price is $1,300 per module. ABC operates in a small office that rents for $600 a month and leases computer equipment that costs $480 per month. The chart lists other cost of production. Output (Q) Fixed (Instructional Cost Modules Per month) 0 1 2 3 4 5 6 7 8 9 10 Variable Total Average Average Cost Cost Fixed Variable (TC) Cost (AFC) (FC) (VC) 1,080 400 1,350 1,900 2,500 4,100 5,400 7,300 1,480 2,430 4,280 10,880 216 135 Cost (AVC) 475 Average Total Cost (ATC) 965 Marginal Cost (MC) 400 450 700 1) Complete the chart and plot the following graphs: AFC, AVC, ATV, MC. Be sure to label axis and graphs. 2) How many instructional modules ABC will produce, assuming it is profit- maximizer? Explain your answer and show that on the graph. 3) Determine ABC's profit and shade the profit on the graph. 4) Given the level of ABC's…arrow_forward
- b. Manton Bakery is a company that bakes bread. Here is the relationship between the number of workers at the bakery and Manton's output in a given day: Workers 0 1 2 3 4 5 6 7 Output loaves 0 20 50 90 120 140 150 155 Marginal Total Average Product Cost Total Cost Marginal Cost (i) Fill in the column of marginal product. What pattern do you see? How might you explain it? (ii) A skilled baker costs £100 a day, and the firm has fixed costs of £200. Use this information to fill in the column for total cost. Fill in the columns for average total cost and marginal cost. What patterns do you see? (iii) Compare the column for average total cost and the column for marginal cost. Explain the relationship.arrow_forward340 425 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC curves, plot the points on the integer; for example, the average total cost of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For marginal cost, plot the points between the integers; for example, the marginal cost of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 200 175 ATC 150 125 - AVC 100 MC 75 50 25 1 4 QUANTITY OF OUTPUT (Pairs of boots) COSTS (Dollars per pair) 8 6arrow_forwardFill in the table Costs of Production of a Soap Manufacturer Bar of Soap (Quantity) Total Fixed Cost Total Variable Cost Total Cost Average Cost Average Fixed Cost Average Variable Cost Marginal Cost 100 1,000 1,500 2,500 25 10 15 200 1,000 2,000 3,000 15 5 10 500 300 1,000 2,500 3,500 11.67 3.33 8.33 500 400 1,000 3,000 4,000 10 2.50 7.50 500 500 1,000 3,500 4,500 9 2 7 500 600 1,000 4,000 5,000 8.33 1.67 6.67 500 700 1,000 5,000 6,000 8.57 1.43 7.14 1,000 800 1,000 6,000 7,000 8.75 1.25 7.50 1,000 900 1,000 7,000 8,000 8.89 1.11 7.78 1,000 1,000 1,000 9,000 10,000 10 1 9 2,000 Using the data in the table, graph and explain the following: a. Total cost b. Average cost, Average Variable cost and Average Fixed cost. c. Total cost and Marginal costarrow_forward
- Use the following information to answer question 22-23 Number of Workers Hired A 5 6 7 B a) fourth b) sixth seventh d) eighth Question 22 Diminishing marginal returns set in when the process C) seventh d)eigth Number of Meats Sold Question 23 Average product will fall above marginal product when the a) fourth b) sixth 3) zero 60 140 230 total costs total variable costs 300 320 d) total fixed costs Question 24 The maximum loss a fimm should experience in the short nun is equal worker is added to the production worker is hiredarrow_forwardQuestion 4 Pizza Inn Company Ltd is a new company in Accra that produces pizza, Lasagna, and Spaghetti Bolognese. The table below shows the production costs for the company. Use the table to answer the questions below Table 1: Cost for Producing Pizza Quantity Total Fixed Total Cost (TFC) Variable Cost (TVC) 1 2 3 4 5 6 60 60 60 60 60 60 Total Cost (TC) (AFC) Average Average Average Marginal Fixed Cost Variable Cost Cost (AC) (MC) 90 100 105 115 135 180 Cost (AVC) a) Fill in the cost table for Pizza Inn Company Ltd b) If the Pizza Inn operates under Perfect Competition and the market price is 20 (i.e. P=Gh20) what is the profit maximizing output level from the table c) Is this firm in the short run or long run and why? d) At the profit maximizing output level (found in A), is the firm making profit or loss; and what is the value of this profit or loss e) From your answer for D, should the firm shut down or continue to operate and why? (5 marks) f) Why is it that the Average Variable…arrow_forwardQuestion 13 Table 12-3 Quantity 0 1 2 3 4 5 0 Total Cost $10.00 15.00 1750 Average Total Cost $15.00 8.75 7.50 7.50 8.00 875 964 Marginal Cost $5.00 2.50 5.00 7.50 10.00 12:50 22 50 30 00 40 00 52.50 7 67 50 11 85.00 10 63 9 105.00 11.67 20.00 Mary sells basketballs in a perfectly competitive market Table 123 sunemanzes Mary's ouput per day (O), total cost (TC), average total cost (ATC) and marginal cont (MC) 15:00 17:50 Refer to Table 12-3. What will Mary's output bo and how much profit will he ear if the market price of basketbi $7,507 OQ-3, prot- $7.50 OQ-0, prot- $10.00 OQ-4profit-50 O Price and profit cannot be determined from the information givenarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax