EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 8, Problem 2SP
To determine
Identify the diminishing product from the given data.
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Students have asked these similar questions
What is the average cost for the firm from the table below
4.a) Consider the following table for a wheat
farmer in long run:
Q (wheat) 12 345 6 7
VC (in
TK)
20 30 60 120 240 500 700
Calculate ATC for each unit. Then find out
minimum efficient scale.
b)What are the relationships between ATC
and MC? Explain it with a relevant graph.
As total output increases average fixed cost v (Click for List)
constant
at a maximum
falling
rising
at a minimum
Chapter 8 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- a software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?arrow_forwardUse the accompanying graph to answer the following questions. Assume the company makes 30,000 parts per month of Product A and 17,500 parts per month of Product B. Click the icon to view the provided graph. (a) Which Product has the higher variable cost, and what is this value in units of dollars per part? has the higher variable cost. This value is $/part. (Type an integer or a decimal. Round your answer to two decimal places.) More Info Total Cost or Revenue [$] Milions $6- $5- $4- $3- FA $0- O. 0 10 - Product A Total Cost - Product B Total Cost Product A Revenue Product B Revenue G1 A 20 30 G T 40 Time (t) [months] Print 50 Done 60 N ... 70 80 Ⓡ o Xarrow_forwardUse the table to answer the uestion below: Quantity Total Cost 0 10 1 23 2 32 3 40 4 55 calculate the total variable cost to produce 3 units?arrow_forward
- The table below shows the weekly cost of producing cowboy hats. Complete the table by filling in the missing values. Instructions: Round your answers to 1 decimal place. Cowboy Hat Production Costs Total Fixed Cost Total Variable Cost output (dollars) (dollars) 0 $1,000 10 20 30 50 $0 500 860 1,400 Total Cost (dollars) $1,000 1,660 2,100 Average Fixed Cost (dollars) 3-1 $ 33.3 Average Variable Cost (dollars) TEAM $ 33 28.7 28 Average Total Cost (dollars) $150 83 52.5arrow_forwardThe cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $10,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Average Total Cost ($) Total Cost of Average Variable Cost ($) Average Fixed Cost ($) Output $10,000 20,000 60,000 45,000 95,000 70.000 150.000 95,000 220.000 120,000 325.000 145.000 465,000arrow_forwardWhat is the term for the change in total cost resulting from a one-unit increase in production? average fixed cost opportunity cost average variable cost marginal costarrow_forward
- Use the table below to answer the following question. Units of Output Total Fixed Cost Total Variable (dollars) (dollars) Cost 1 150 50 150 96 3 150 140 150 180 What is the marginal cost of producing the third unit of output? $20 $44 $70 This cannot be determined from the data.arrow_forwardThe graph below illustrates a series of short-run average cost curves, numbered AC, through AC5, which correspond to five different plant sizes, which are the only sizes possible. AC AC 48 AC AC AC, 24 12 280 560 40 1120 1400 1680 1960 Quantity of output a. What is true about output levels 280, 560, 840, 1,120, and 1,400? (Click to select) b. What is the right size of a plant to produce an output of 700? (Click to select) c. Between what plant sizes does the firm experience economies of scale? (Click to select)arrow_forwardComment on the relationships of Total, Marginal and Average Productarrow_forward
- Use the information in the graph to the right to find the values for the following at an output level of 65 The marginal cost is $55 (Enter a numeric response using an integer.) The total cost is $2925 The variable cost is $2405 The fixed cost is $520 XX Cost 100- 55 45. 37 0 65 Quantity of output MC ATC AVCarrow_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_forwardThe cost structure of a manufacturer of microchips is described in the table in the next column. The firm’s fixed costs equal to $10 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. Output (microchips per day) Total Cost of Output ($ thousands) 0 10 25 60 50 95 75 150 100 220 125 325 150 465arrow_forward
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