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3. Following the question above, after studies to your cost and budget, you now need to consider market structure of tacos catering in the city you operate your business. Use the cost information obtained from the previous question, to finish the questions here. (1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - are estimated as values per day. Total cost. Your results %3D

3. Following the question above, after studies to your cost and budget, you now need to consider market structure of tacos catering in the city you operate your business. Use the cost information obtained from the previous question, to finish the questions here. (1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - are estimated as values per day. Total cost. Your results %3D

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. Following the question above, after studies to your cost and budget, you now need to consider market structure of tacos catering in the city you operate your business. Use the cost information obtained from the previous question, to finish the questions here. (1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - Total cost. Your results are estimated as values per day. 2. You are thinking to start your food catering business by making rolled tacos, which are often called taquitos (corn tortillas) and flautas (flour tortillas). As suggested, one important step is to estimate startup costs and prepare the budget. Your estimate shows, on a daily basis, your fixed cost (FC), including rent, utility, fees and tax, is about $300 per day. Your variable cost (VC) is largely depending on the units of labor (variable input) you are going to use. Hiring one labor will cost you $120 per day. Use the information given, to finish the questions below. (1) The table below presents the cost structure of your taco business. The first two columns give you the number of your output or tacos (Y) and the units of labor inputs. To finish this table, you need to calculate variable cost (VC), total cost (TC), marginal cost (MC), average variable cost VC = I20 xlaborunits TC p=VCn+fixed cost AVC= (AVC) and average total cost (ATC). Note: MC = ATC / AY. Fixed Cost 30d vanable cost20perdayforone labor Output, Variable input and Costs (per day)MC = TCn-TG-1 ATC AY Таcos Labor VC TC MC AVC АТС ATC 50 1 120 420 0.00 2.4 105 240 360 480 600 720 840 960 1080 1200 120 8.4 540 660 780 900 (020 l140 1260 1380 1500 (2.285114Sil42857 120 2.181818 120 2.086957 3.391304 (20 165 3 230 4 288 2.083333 117647 (20 181818 2.961039 3 a25 340 6. 120 3. 385 420 285714 8 120 120 3.066673 (2.608696|326o87 450 9. 460 120 10
Transcribed Image Text:3. Following the question above, after studies to your cost and budget, you now need to consider market structure of tacos catering in the city you operate your business. Use the cost information obtained from the previous question, to finish the questions here. (1) Suppose you are now operating your business in a town which has a very competitive taco catering market. There are many restaurants and food caterers providing rolled tacos (flautas and taquitos). Your business is just one of many of them. If the market price (P) is $4.00 per rolled taco, to maximize your profit, how many tacos you should make per day? At this output level, what are the values of your marginal cost (MC), marginal revenue (MR), average revenue (AR), total revenue (TR) and total profit? Note: Total profit = Total revenue - Total cost. Your results are estimated as values per day. 2. You are thinking to start your food catering business by making rolled tacos, which are often called taquitos (corn tortillas) and flautas (flour tortillas). As suggested, one important step is to estimate startup costs and prepare the budget. Your estimate shows, on a daily basis, your fixed cost (FC), including rent, utility, fees and tax, is about $300 per day. Your variable cost (VC) is largely depending on the units of labor (variable input) you are going to use. Hiring one labor will cost you $120 per day. Use the information given, to finish the questions below. (1) The table below presents the cost structure of your taco business. The first two columns give you the number of your output or tacos (Y) and the units of labor inputs. To finish this table, you need to calculate variable cost (VC), total cost (TC), marginal cost (MC), average variable cost VC = I20 xlaborunits TC p=VCn+fixed cost AVC= (AVC) and average total cost (ATC). Note: MC = ATC / AY. Fixed Cost 30d vanable cost20perdayforone labor Output, Variable input and Costs (per day)MC = TCn-TG-1 ATC AY Таcos Labor VC TC MC AVC АТС ATC 50 1 120 420 0.00 2.4 105 240 360 480 600 720 840 960 1080 1200 120 8.4 540 660 780 900 (020 l140 1260 1380 1500 (2.285114Sil42857 120 2.181818 120 2.086957 3.391304 (20 165 3 230 4 288 2.083333 117647 (20 181818 2.961039 3 a25 340 6. 120 3. 385 420 285714 8 120 120 3.066673 (2.608696|326o87 450 9. 460 120 10
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