3. Total cost is the a. amount a firm receives for the sale of its output. b. fixed cost less variable cost. с. market value of the inputs a firm uses in production. d. quantity of output minus the quantity of inputs used to make a good.
Q: 2. You are the manager of production at a firm that sells high performance road bikes. Your firm has…
A: Answer: Quantity Average cost (AC) Total cost= AC*Quantity Marginal cost 548 bikes $245…
Q: 14. Explain which of the following is a fixed cost or a variable cost for Southwest Airlines. a. The…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 3. Calculate TC, AFC, AVC, ATC and MC. Fixed Variable Costs Average Average Average Marginal Units…
A: 3) The formulas below would be required for the values in the table. TC= FC+ VC Total cost is the…
Q: Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: Economies of scale refers to the gradual decline in the average cost with increase in the scale of…
Q: Marginal cost is the: rate of change in total fixed cost that results from producing one more unit…
A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…
Q: Which of the following is an implicit cost to a firm that produces a good or service? A. Labor…
A: Opportunity cost shows the forgone units of one good in acquiring the other good. Implicit cost is…
Q: 1. Suppose that the price of the firm’s product is GH¢30.00, how much will the firm produce to…
A: 1) ANS Total Revenue is the product of the price and the quantity (Q), if the price is P then TR =…
Q: Explain every point with graph. 1. Economic and business cost . 2. Short run production analysis /…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: The amount of money that a firm pays to buy inputs (resources) is called a. fixed cost b. total cost…
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Refer to Figure 1. Curve 3 is Outdoor Equipment's Select one: a. Average variable cost curve. b.…
A: Average total cost is total cost divided by quantity. i.e., ATC = (Total cost / Quantity)Average…
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: Marginal cost tells us a. the amount fixed cost rises when output rises by one unit O b. the…
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Which of the following best describes total fixed cost?a.The change in total cost when one…
A: Cost in the domain of accounting, the overall costs for a business may be classified into different…
Q: 1) In short, what does the production function describe? A .how a firm maximizes profits. B. how a…
A: Production refers to the process of creating goods or services through the conversion of inputs…
Q: __________ refers to the expenditures incurred by a firm to obtain the factors of production that…
A: Factors of production are the main pillars for producing output in the economy. All the inputs of…
Q: A firm produces one good and has average cost equal to 115, average variable cost equal to 75, and…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: Quantity Total Cost Marginal Cost Total Revenue Marginal Revenue Profit $8 $0 1 10 16
A: Marginal Cost = Change in the total cost ÷ Change in quantity Marginal Revenue = Change in total…
Q: 27. If a firm will produce an additional unit of good or services, determine what will happen to…
A: In the market, firm may change its production decision with the change in the market situation and…
Q: In the short run, an increase in output at low levels of production will most likely cause: A.…
A: Increasing Returns to Scale:Increasing returns to scale occurs when doubling inputs more than…
Q: 1. Which of the following statements is true? a. the cost of producing output in the short run is…
A: Production cost is the value of all resources and labor exhausted in the production process of a…
Q: Fixed cost is a. Any cost that does not vary with the quantity of output. b. The ratio of total cost…
A: Companies have different costs linked to their company. These expenses are broken down by the…
Q: UNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE…
A: f. The relationship between marginal product and marginal costMarginal product is the additional…
Q: When the volume of production is higher than the volume of production at break even point than the…
A: The break-even point is the degree of sales at which the organization is neither creating a gain nor…
Q: 4. COST RELATIONSHIPS. A firm's total costs can be broken down into fixed costs (e.g., rent) and…
A: We use the following formulas to be able to answer the question, Total costs = Total fixed costs +…
Q: Figure: Short-Run Costs Cost curves (dollars) $200 150 100 50 total cost F: 0 1 2 3 average total…
A: Average Total Cost: Total cost per unit of output. Average variable cost: Variable cost per unit of…
Q: Refer to Figure 1. Curve 1 is Outdoor Equipment's Select one: a. Marginal cost curve. b.…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: 22. Which one of these will continuously increase as more products are produced? a. None of the…
A: In the market, a firm has to face different types of costs when it decides to enter the market, such…
Q: a. Why is the gap or difference between average total cost and average variable cost larger at…
A: Cost is a metric of the possibilities foregone when one product or task is chosen over another.
Q: Long-run costs of production are generally lower than the short run costs because: a. all inputs…
A: Production cost is divided into two parts fixed and variable. The fixed cost does not change with…
Q: According to a firm’s technology of production, you can take away 3 units of labor if you add 5…
A: The marginal rate of technical substitution (MRTS) is the rate at which one factor of production can…
Q: What is the optimization condition for economically efficient use of energy in production in the…
A: In the short run, the optimal production occurs at the following point. MR = Price of input / Price…
Q: 21. Which of the following is not true? a. Marginal cost intersects average variable cost at its…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 4. Economies of scope refer to: A) changes in technology. B) the very long run. C) multiproduct…
A: Economies of scope refer to the economic benefits that a company can achieve by producing a variety…
Q: Which of these will have lower values as the quantity produced increases? a. Fixed cost per unit b.…
A: Fixed Cost remains fixed at all levels of output. Average Fixed Cost or fixed cost per unit…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Which of the following is an implicit cost to a firm that produces a good or service? A. Labor costsB. Costs of operating production machineryC. Foregone profits of producing a different good or serviceD. Costs of renting or buying land for a production site1) In short, what does the production function describe? A .how a firm maximizes profits. B. how a firm turns inputs into output. C. the minimal cost of producing a given level of output. D. the relationship between cost and output. 2)What is the significance of the point at which Marginal Revenue and Marginal Cost curves intersect on a graph? A. total revenue is equal to variable cost. B. total revenue is equal to fixed cost. C. total revenue is equal to total cost. D. profit is maximized.Explain every point with graph. 1. Economic and business cost . 2. Short run production analysis / law of variable proportion. 3. Short run cost analysis.
- What is the optimization condition for economically efficient use of energy in productionin the short run?a. The marginal revenue product equals the price of the input.b. The total revenue from the production equals the total cost of the input.c. The average revenue from the production equals the price of the input.d. Revenue is maximized4. COST RELATIONSHIPS. A firm's total costs can be broken down into fixed costs (e.g., rent) and variable costs (e.g., payroll), so TC = FC + VC. Dividing by quantity converts these to averages, so TC/Q = FC/Q + VC/Q, or ATC = AFC + AVC. The additional cost incurred by producing one additional unit is the marginal cost, so MC = ATC/AQ, where the Greek letter delta (A) means "a change in." Here is a table showing the various costs for a simple firm that sells a product using a building (capital, a fixed input) and workers (labor, a variable input). Assume that the price of labor is 20 and the price of capital is 120. Use these three cost relationships to complete the table. Total Total Average Variable Cost, Сapital, Output, Q Labor, Total Average Fixed Average Total Cost, Marginal Cost, MC Variable K Fixed Cost, TC Cost, Cost, TFC Cost, TVC AVC AFC АТС 1 120 N/A N/A N/A N/A 1 2 1 160 3 1 20 3 6. 1 404. Economies of scope refer to: A) changes in technology. B) the very long run. C) multiproduct firms. D) single product firms that utilize multiple plants. E) short-run economies of scale.
- 22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost1. What is the formula to calculate profits? 2. Define Explicit and Implicit Costs. 3. Define Economic Profit and Accounting Profit. 4. Define Production Function, Marginal Product, and Diminishing Marginal Product. 5. Define Fixed Costs and Variable Costs. 5. Provide the formula/calculation for the following costs: Average Total Cost, Average Fixed Cost, Average Variable Cost, Marginal Cost. 6. Define Minimum Average Cost and Efficient Scale. 7. Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.Marginal cost tells us a. the amount fixed cost rises when output rises by one unit b. the marginal increment to profitability when price is constant c. the value of all resources used in a production process d. the amount total cost rises when output rises by one unit
- 1 . Costs in the short run versus in the long run Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Average Total Cost (Dollars per bike) Number of Factories Q = 200 Q = 300 Q = 400 Q = 500 Q = 600 1 440 280 240 320 480 800 2 620 380 240 240 380 620 3 800 480 320 240 280 440 Suppose Ike’s Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is ? per bike. Suppose Ike’s Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using (one factory, two…A firm produces one good and has average cost equal to 115, average variable cost equal to 75, and fixed cost equal to 5000. 3P. How many units does the firm produce?a. marginal factor of production. b. fixed factor of production. c. incremental factor of production. d. variable factor of production. 21. Which of the following is not true? a. Marginal cost intersects average variable cost at its minimum point. b. Marginal cost intersects average total cost at its minimum point. c. Marginal cost intersects average fixed cost at its minimum point. d. Average fixed cost intersects average variable cost at its minimum point. 22. If a consumer moves upward along an indifference curve, his or her total utility: a. remains constant. b. first decreases, then increases. c. increases. d. first increases, then decreases. 23. Jill Smith, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream. She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter rose. As she adjusts to this event, she will consume: a. more peanut butter and more ice cream. b. less peanut butter…