10. Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces any output. a. How does this tax affect the firm’s fixed, marginal, and average costs? b. Now suppose the firm is charged a tax that is proportional to the number of items it produces. Again, how does this tax affect the firm’s fixed, marginal, and average costs?

Q: What s the ourence between accounting proft and economic profe? OA Economic profit subeacts both…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Q2. Law of diminishing marginal returns is applicable in both short run as well as long run.  is it…

A: The law of diminishing marginal returns expresses that as an ever increasing number of units of data…

Q: PROBLEM 1. 4 The following table represents the production costs for a single firm in the short run.…

A: We have given  Q FC VC TC MC AVC ATC 0     24       3   18         5       12     8…

Q: Cost LRAC 40 30 N 20 10 100 200 400 800 Output

A: The firm earns maximum profit at the point where the average costs are the minimum.  To understand…

Q: QUESTION 9 The slope of the iso-cost curve O a. Depends on the marginal productivity of the inputs…

A: Iso-cost curve: It can be defined as the combination of labors and capital used for production of…

Q: If a firm's average variable cost curve is rising, its marginal cost curve must be

A: If a firm`s average variable cost curve is rising, its marginal cost curve must be

Q: The production function of the firm displays decreasing returns to scale at all levels of output…

A: The production function of the firm displays decreasing returns to scale at all levels of output…

Q: 3. Which of the following types of cost is directly dependent on a firm's output rate? a. fixed cost…

A: Total cost is the sum of fixed cost and variable cost.  Fixed cost are the cost that are fixed and…

Q: 6. Suppose a firm's total cost is given by TC = 200+ 2Q- .006Q² +.000020³ (a) What is the firm's…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost at…

Q: Which is NOTa cause of shift in cost curves of a firm?

A: To find : Which is not cause of shift in cost curves of a firm.

Q: j. What is happening to average total costs when they equal marginal costs? k. Marginal costs equal…

A: The table including the variable input, total product, price of input and Total Fixed cost is given…

Q: a. Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost…

A: Formula to calculate:- Total Cost:-               TC=Variable cost+Fixed cost Marginal Cost:-…

Q: 4. a. b C. Assume a perfectly competitive firm with a strictly quasi-concave production function, q…

A: A perfectly competitive firm with a strict quasi-concave production function is provided. The…

Q: 20. If there are implicit costs of production Economic profit will be equal to accounting profit A.

A: Accounting profit is calculated by using the formula revenue minus expenses that is the net income…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

A:

Q: As a firm expands its output, its average fixed cost does which of the following? O It declines…

A: Average Fixed Cost is the total fixed cost per unit of output.  AFC = TFC/Q

Q: Suppose that Smith Co sells 15 coats for $69.00 per coat. Each coat costs $44.00 to produce, and…

A: Microeconomic firm theory investigates how businesses maximize profits through manufacturing,…

Q: 3. A firm has two plants that produce identical output. The cost functions are C1₁ = 20q-8q² + 2q³…

A: A cost function is a mathematical function that describes the relationship between the cost of…

Q: 6. A firm's long-run total cost function is given by LTC = 115.000Q-500Q2 + G where Q is the…

A: Gradually in simple words we can say that the economies of scale are determined to be as the cost…

Q: What is the law of diminishing returns? Why does marginal product eventually diminish? b. Explain…

A: Perfectly competitive market is a market structure where there are many small firms producing…

Q: 4. A firm has the following production function: Q = 50L + 6L² – 0.5L3 %3D (a) production function.…

A: Answer - "Thank you for submiting the questions.But, we are authorized to solve first sub parts…

Q: and average products when Jabot chooses L* to minimize Cost of Qo, given fixed Ko. MP* and AP* are…

A:

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: What is the formula to calculate profits?

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: 3 (Chapter 7 Costs) The firms cost curve is c(y) = 10y² + 1000. For which output quantity the…

A: Cost curve shows the relationship between the output and cost of production. The average cost of…

Q: 2. Assume that the marginal cost of production is greater than the average variable cost. Can you…

A: Formula to calculate AVC and MC:- AVC=TVCQMC=TCn-TCn-1 where; TVC= Total Variable CostTC=Total…

Q: How would each of the following affect the firm's marginal cost (MC), average Variable East (Av…

A: Average Variable Cost (AVC): The average variable cost (AVC) of generating each unit of output is…

Q: 2. Let a firm's short run total cost curve be given by c(y) = 10+10y-y²+0.25y³; therefore: MC = 10 –…

A: Short run supply curve"it is the portion of its supply curve that lies above its average variable…

Q: The figure below shows a firm's long-run average cost curve (LAC) in light 2. blue. Three of the…

A: A long run average cost curve is known as an arranging bend. This is on the grounds that a firm…

Q: When examining the costs faced by a business, explain how economists distinguish between the short…

A: First part The contrast between the short and long runs is critical in economics. It turns out that…

Q: 8. siuppose that the manager of a firm operating in a competitive market has estimated the firm's…

A: (a) Average Variable cost (AVC) is multiplied by the quantity (Q) to get variable cost (VC). Total…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: At a current level of production of 10,000 per day in its Garner plant, the marginal cost of…

A: According to the question, it is given that : Output per day is 10,000  Marginal Cost is 50 cents…

Q: 4. A firm has production function q = KL. The wage and rental rates are both 10. Does this…

A: The production function is a concept in economics that describes the relationship between inputs and…

Q: Give an example of a fixed cost and a variable cost.

A: Variable and Fixed costs in economics are those two types of costs that a firm incurs during the…

Q: If a firm will produce an additional unit of good or services, determine what will happen to their…

A: The total cost of production equals the sum of the fixed cost and the variable cost. The fixed cost…

Q: Rikell company produces helmets using labor (L) and capital (K). Its production function is given by…

A: Complementary goods are consumed together in fixed proportion

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.