1. Supposed that a firm's fixed cost increase due to a rise in rental payment. What impact will this have on the firm's a) average fixed cost, b) average variable cost, c) average total cost and d) marginal cost? Why? 1 2. Kid Center offers tutorial classes. Fixed costs are estimated at P5, 000 a month, the variable cost per chila is P100 an hour, and the price per hour is set at P150. How many hours of instruction are required to break even? 3. Maria is a seller in a purely competitive market. Which of the assumptions in the theory of perfect competition will convince her that she will only break even in the long run?
1. Supposed that a firm's fixed cost increase due to a rise in rental payment. What impact will this have on the firm's a) average fixed cost, b) average variable cost, c) average total cost and d) marginal cost? Why? 1 2. Kid Center offers tutorial classes. Fixed costs are estimated at P5, 000 a month, the variable cost per chila is P100 an hour, and the price per hour is set at P150. How many hours of instruction are required to break even? 3. Maria is a seller in a purely competitive market. Which of the assumptions in the theory of perfect competition will convince her that she will only break even in the long run?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Please help me answer all the questions. ??
Transcribed Image Text:1. Supposed that a firm's fixed cost increase due to a rise in rental payment. What impact will this have on the
firm's a) average fixed cost, b) average variable cost, c) average total cost and d) marginal cost? Why? 10
2. Kid Center offers tutorial classes. Fixed costs are estimated at P5, 000 a month, the variable cost per chila is
P100 an hour, and the price per hour is set at P150. How many hours of instruction are required to break
even?
3. Maria is a seller in a purely competitive market. Which of the assumptions in the theory of perfect
competition will convince her that she will only break even in the long run?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education