2. A company's total cost function as TC = 4,900 + 12Q+40² Derive the following equations and compute their respective values when Q=35 a. Average Total Cost (ATC): b. Average Variable Cost (AVC): C. Average Fixed Cost (AFC): d. Marginal Cost (MC):

2. A company's total cost function as TC = 4,900 + 12Q+40² Derive the following equations and compute their respective values when Q=35 a. Average Total Cost (ATC): b. Average Variable Cost (AVC): C. Average Fixed Cost (AFC): d. Marginal Cost (MC):

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: Solve for the following: a. Marginal Cost b. Average Cost Suppose that a food manufacturing…

A: Cost is the expense that incur in the process of production. The marginal cost refers to the cost…

Q: Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The average cost per…

A: Answer - Given in the question - TC = $1,000 + $6X Here TC = Total cost X is no. of widget Need…

Q: Solve the attachment.

A: The firms incur costs as per their production processes and other requirements to maintain and make…

Q: Economic cost and accountant cost are not equal. Why aren’t they equal? Explain with example

A: Maintaining a business demands that you keep a heartbeat on the monetary components that influence…

Q: Why does the difference between AVC and ATC get smaller as Q increases? b) Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

Q: A firm’s cost function is C(q) = 100q − q^2+1/5q^3+450 (a) Derive the marginal cost, the average…

A: Cost is the expenditure incurred on the production of goods and services.

Q: What is the wholesale cost of an item, if the retail cost is $37 and the amount of markup is $7? Use…

A: Retail is the sale of goods to final consumers and the units sold is individual unit of good.…

Q: Discuss some of the difficulties encountered in applying these economic concepts in practical…

A: The fixed cost is the cost which remains the same even when the firm produces nothing as output.…

Q: 1. Suppose a cost function is defined as C(q) = 8 + 13q + 15q^2 (a) Find the ATC, AVC, AFC and MC…

A: Average total costs: Economic costs involve not just the accounting costs but also the opportunity…

Q: Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: 1. Find fixed cost 2. find…

A: Cost of production occurs while producing goods and services in the economy. The production of these…

Q: Alejandro is one of the leading ceramic vase producers in the country. His total costs (TC) amount…

A: Average total cost = Total cost/ Output.

Q: If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? •…

A: Economies of scale refers that when the cost per additional unit is decreasing due to increasing in…

Q: 39) If the marginal cost curve is below the average variable cost curve, then A) average variable…

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

Q: Hello, I have finished reading chapter6: product costs and have some trouble understanding the short…

A: Average variable cost(AVC), average total cost (ATC), and marginal cost(MC) all these curves are…

Q: Which of the following is true of the relationship between Average Cost and Marginal Cost Select…

A: Average Cost refers to the per-unit cost of production, it means both fixed and variable costs are…

Q: Chapter 22 Supply: The Costs of Doing Business Why does the minimum point of the average-total-cont…

A: Fixed costs are the costs that do not change with the number of units produced. These costs are…

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: 210 270 315 4 380 475 630 On the following graph, plot Douglas Fur's average total cost (ATC) curve…

A: Fixed cost is independent of output produced. Thus required fixed cost is $120. Variable cost varies…

Q: Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant)…

A: Marginal cost is the measurement of change in the total cost with the increment of one unit of…

Q: Which one of the following would be regarded as a variable cost for a firm? Select one: a. the…

A: Meaning of Variable Cost: The term variable costs are those cost which changes or fluctuates, as…

Q: 3. The "Sad Student" Company finds that it costs a total of C(q) =9720+500g-1.59² +0.005q³ Dollars…

A: The function that depicts the relationship between the production quantity of goods or services and…

Q: Problem 2, From the data given below, calculate: O Average fixed cost, (ii) Average variable cost,…

Q: I want correct answer.....Please provide steps by step answer with proper and correct answer with…

A: Option a) $1,200: This option is incorrect because the average total cost (ATC) is calculated by…

Q: Water and electricity used in manufacturing company is an example of: A Manufacturing overhead -…

A: The markets are the place where the buyers of various goods, and services tend to meet and interact…

Q: Output Total Cost 8) $10 20 28 3. 38 4 53 73 6. 98 Refer to the provided table. The total fixed cost…

A: Since you have asked multiple questions, we have answered the first question for you. If you want…

Q: 3. The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16…

A: The total cost is the sum of the fixed cost and variable costs of the business. The variable cost is…

Q: The short-run total cost function of repairing s cars is TC(y)=2y2+10. Find the following: (a.…

A: Fixed costs are costs that do not vary with the level of production or output. They are expenses…

Q: B. Complete the table below using the given data. Average Variable Cost (RM) Total Average Cost (RM)…

A: Total fixed cost refers to the cost of production that does not change despite the level of output…

Q: lassify each individual element of cost according to its behavior pattern (fixed, variable, or…

A: Fixed costs, variable costs, and semi-variable costs are types of costs that are classified based on…

Q: Suppose that average total cost is $60, average fixed cost is $25, marginal cost is $45, and output…

A: Given, ATC = $60 AFC = $25 MC = $45 Output = 300.

Q: (a) Explain clearly the difference between accounting cost and economic cost. (b) Explain whether…

A: Running a company necessitates a constant awareness of the financial factors that influence net…

Q: Q1. If fixed cost (FC) is $50, variable cost (VC) is $100, and output (quantity) is 3, what is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Question 4 Copy the table below into your answer booklet and fill in the missing figures: Output…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: a. Complete the following schedule, if the fixed cost = BD 700. (Note: you will receive full marks…

A: Here, output and total cost is given with the fixed cost of BD 700 and the formulas related to other…

Q: If cost is measured along the vertical axis and output on the horizontal axis, total fixed cost is…

A: Total Fixed Cost (TFC) refers to the sum of all costs that do not change with the level of output…

Q: Average variable cost is always increasing as output increases whenever... Group of answer choices…

A: Variable cost refers to the cost that changes as output or production changes. Average variable cost…

Q: 86. Average and marginal costs. The total daily cost (in dollars) of producing x city bikes is given…

A: Total cost function: The total cost is in dollars. The average cost function is the total cost…

Q: 2 Find the total cost function given, the fixed costs are $200 and the variable cost per unit is a…

A: total cost is addition of fixed cost and variable cost. In this Fixed cost = $200 and variable cost…

Question

2. A company's total cost function as TC = 4,900 + 12Q+4Q Derive the following equations and
compute their respective values when Q = 35
a.
Average Total Cost (ATC):
b.
Average Variable Cost (AVC):
C.
Average Fixed Cost (AFC):
d.
Marginal Cost (MC):

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: Define Costs

VIEW

Step 2: Determine cost functions

VIEW

Solution

VIEW

Step by step

Solved in 3 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

The table below provides a simple cost schedule for a firm in the short run, complete 1a – 1d using the data. Total Output in thousands (Q) Total Fixed Cost $(TFC) Total Variable Cost (TVC) Total Cost (TC) Marginal Cost (MC) Average Fixed Cost (AFC) Average Variable Cost (AVC) Average Total Cost (ATC) 0 $50 $50 1 $50 20 $70 20 50 20 70 2 $50 $85 3 $50 $95 4 $50 $100 5 $50 $110 6 $50 $130 7 $50 $165 8 $50 $215 9 $50 $275 Fill in the missing data using the cost calculations for short run costs
Compare and contrast: a) Average fixed cost vs. Total fixed costb) Total variable cost vs. Average variable cost.
A bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost (ATC) = $45, and marginal cost (MC) = $25. The shoe factory’s total variable cost is
Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $45,000; rent, $0; and other expenses, $40,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ (Enter your response as an integer.) es Get more help Clear all Check answer
Answer all and get like. Hand written solutions are strictly prohibited
Please fill out the missing figures Output Total Cost (TC) Total Fixed Costs (TFC) Total Variable Cost (TVC) Marginal Costs (MC) 0 100 ? ? ? 1 160 ? ? ? 2 200 ? ? ? 3 228 ? ? ? 4 260 ? ? ?
how do you know the total variable is 50 when finding the total fixed cost?
What 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 cost
Total Fixed Cost (TFC), Total Variable Cost (TVC), Total Cost (TC), and the Average Total Cost (ATC) per unit. A company produces 100 bicycles per month. The company pay 3,000 per rent, 2,000 per insurance, 1,000 per loan, including interests, 3,000 per labor, and 11,000 per raw materials. Calculate the Total Fixed Cost (TFC), the Total Variable Cost (TVC) the Total Cost (TC) of producing the 100 bicycles and the Average Total Cost (ATC) per bicycle.
Fill in the blanks with: (a: rising) (b: at a minimum) (c: at a maximum) (d: falling) (e: constant) 1: When marginal cost is less than average variable cost, average variable cost is: 2 When marginal product is greater than average product, average variable cost is: 3: When marginal product is negative, total product is: 4: As total output increases average fixed cost is: 5: When marginal cost is at a minimum average product is:
Which of the following is correct? a) Total Fixed Cost = Total Cost + Total Variable Cost b) Total Cost = Total Variable Cost + Marginal Cost c) Average Fixed Cost = Average Total Cost – Average Variable Cost d) Average Total Cost = Marginal Cost + Average Fixed Cost
Question 6: For each of the total cost functions, write the expressions for the average cost, average fixed cost, average variable cost, and marginal cost: 1. TC (Q) = 5Q 2. TC (Q) = 120 +6Q 3. TC (Q) = 6Q² 4. TC (Q) = 140 +5Q²