2. There are three student canteens serving different types of foods located at the campus. Table below shows the total costs of the catering services according to the number of students served. Number of students served Smile Canteen Rainbow Canteen Happy Canteen 500 15000 16000 19000 28000 32000 58000 108000 40000 1000 2000 50000 80000 4000 80000 168000 6000 114000 156000 258000 (a) Comment on the scale of production of these three canteens. (b) The owner of Happy Canteen decides to sell the business. The owner of Smile Canteen shows interest in it and has done an estimate on the total costs of running the two canteens under one ownership. Based on the estimates below, do you recommend the owner of the Smile Canteen to pick up the business of Happy Canteen? Explain. | Number of students served in each canteen "Smile plus Happy" Canteen 500 40000 1000 65000 2000 110000 4000 215000 6000 390000

2. There are three student canteens serving different types of foods located at the campus. Table below shows the total costs of the catering services according to the number of students served. Number of students served Smile Canteen Rainbow Canteen Happy Canteen 500 15000 16000 19000 28000 32000 58000 108000 40000 1000 2000 50000 80000 4000 80000 168000 6000 114000 156000 258000 (a) Comment on the scale of production of these three canteens. (b) The owner of Happy Canteen decides to sell the business. The owner of Smile Canteen shows interest in it and has done an estimate on the total costs of running the two canteens under one ownership. Based on the estimates below, do you recommend the owner of the Smile Canteen to pick up the business of Happy Canteen? Explain. | Number of students served in each canteen "Smile plus Happy" Canteen 500 40000 1000 65000 2000 110000 4000 215000 6000 390000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 1A: Costs and Total Production for a Competitive Firm Total Total Total Total Marginal Average Average Average Product Fixed Cost Variable Cost Cost Fixed Cost Variable Total (Q) (TFC) Cost (TVC) (TC) (MC) (AFC) Cost (AVC) Cost (ATC) 1 $20.00 $40.00 F. $50.00 B. 3. 4 $58.00 C. H. M $70.00 D $85.00 E J O Y Refer to Table 1A. Blanks G and S can be best filled with values of and respectively. O $10.00: $17.50 O $10.00: $18.50 O $10.50: $17.50 O $10.50: $18.50 o > 3 x > PORST A,
Quantity of commodity A per day Total Variable costs in U. 700 200 60.000 7-25 201 61.000 202 62.500 203 64.000 204 66.000 205 68.500 206 72.000 FO Use Table 1 above to answer question number 25 below New Generation is a perfectly competitive company selling commodity Y at the market price of OMR.500) New Generation Company has fixed costs of OMR 30.000/day and a daily variable cost schedule in Table 1 above. The profit maximizing level of output for New Generation Company is: a. 202 units per day. b. 204 units per day. 206 units per day. d. 205 units per day. 12292-
Question 4 Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day, the firm has fixed costs of $200. L MP MC TC АТС 1 20 2 50 3 90 4 120 5 140 6 150 155 a. Complete the table above b. Compare the average total cost and the marginal cost and explain the relationship c. Describe the methuds that can be used to determine where profit is maximized? IN
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Compare marginal revenue, marginal cost, and marginal revenue product.
1
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4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Denver. The following table shows the company’s total cost of production at various production quantities.
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