Please show equations used. No excel please. 8-21. Suppose natural gas experiences a 1.8%increase per year in real terms over the foresee-able future. The cost of a 1,000 cubic feet of natural gasis now $7.50. (8.2)a. What will be the cost in real terms of 1,000 cubic feetof natural gas in 22 years?b. If the general price inflation rate (e.g., the CPI) forthe next 22 years is expected to average 3.2% peryear, what will a 1,000 cubic feet of natural gas costin actual dollars 22 years from now?

Inflation rate: The rate at which the general price level of goods and services in an economy is…

Answered: 8-21. Suppose natural gas experiences a…

8-21. Suppose natural gas experiences a 1.8% increase per year in real terms over the foresee- able future. The cost of a 1,000 cubic feet of natural gas is now $7.50. (8.2)

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: Labor (workers/day) Output (units/day) Total fixed cost ($/day) Total variable cost ($/day) Total…

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

Q: If total cost is $2100 and the output is 40 units Calculate average cost

A: The information being provided to us is:- Total cost of the firm = $2100 Output = 40 units

Q: Firm Measures: Productivity, Costs, Revenues, and Profits Labor Total Product (TP) Fixed Cost (TFC)…

A: The marginal product of labor (MP) refers to an increase in total production when one additional…

Q: The average cost is $13 and the output produced is 10 units Calculate total cost

A: The average cost is the cost per unit of output. Total cost is the total expenditure that keeps on…

Q: If total cost is $3000 and fixed cost is $1000 Calculate variable cost

A: The data presented in the question above is:- Total cost incurred = $3000 Fixed cost = $1000…

Q: Total variable Total Average variable Output Average total cost Total Average fixed cost Marginal…

A: Here, different cost functions of a firm is given for different output level.

Q: Which software should you purchase in order to save money in the long run, X or M? Not Satisfied…

A: Given:- Two Softwares X and M with their values being $6000 and $12000. To determine:- which…

Q: Total cost is $320 and the fixed cost is $100 Calculate variable cost

A: The data presented in the question about is:- Total cost = $320 Fixed cost = $100 Variable cost is…

Q: Don't use chatgpt

A: The question about "what happened to the $5 production cost" appears to relate to a specific case,…

Q: Calculate the value of total revenue if profit is $3000 and total cost is $1800

A: According to the above given question,we have the values:- Total cost = $1800 Profits = $3000 Using…

Q: Choose a current news item about a company enduring a difficult situation such as layoffs,…

A: Two incredible powers are transforming the very nature of work: robotization and ever fiercer…

Q: Calculate total cost when total revenue is 70,000 and total profit is 5000

A: # The total profit of the firm is given as:- The difference between total revenue and total cost.…

Q: how did you get the 6.25 labor units

A: Profit is the reward for bearing risk. Profit is the excess of total revenue over total cost. So ,…

Q: Output quantity Total variable cost Total cost 0 $0 $250 25 450 50 300 X 75 375 100 600 850 125…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost remains constant and does not…

Q: efficient scale is houses.

A: Efficient scale is the scale at which firm can produce its output at minimum average cost.…

Q: Fixed Costs are £100, Variable costs are constant at £3 per unit produced. (i) Write a table showing…

A: Total Revenue (TR): This is the total income a firm receives from selling a given quantity of goods.…

Q: A short production run with frequent adjustments to machines is considered a(n). process of…

A: The inputs such as capital, labour and land are used to produce and output in the market are known…

Q: It costs a company $58 to produce 6 units of a product and $78 to produce 10 units. Assuming that…

Q: Total cost = $4500 fixed costs = $2000 variable cost = ?

A: In the production process, different inputs are used to produce the final output. Each input has its…

Q: Use the accompanying graph to answer the following questions. Assume the company makes 83,000 parts…

Q: 54.60 40.00 48.60 40.20 43.80 37.80 36.60 36.60 37.80 40.20 20.00 22.20 1.40 0.00 10 11 12 13 14 15…

A: A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price…

Question

Please show equations used. No excel please.

8-21. Suppose natural gas experiences a 1.8%
increase per year in real terms over the foresee-
able future. The cost of a 1,000 cubic feet of natural gas
is now $7.50. (8.2)
a. What will be the cost in real terms of 1,000 cubic feet
of natural gas in 22 years?
b. If the general price inflation rate (e.g., the CPI) for
the next 22 years is expected to average 3.2% per
year, what will a 1,000 cubic feet of natural gas cost
in actual dollars 22 years from now?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Solution and Explanation:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

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

Output (unit) Total cost (RM) Total fixed cost (RM) Total variable cost (RM) Average fixed cost (RM) Average variable cost (RM) Average total cost (RM) Marginal cost (RM) 0 600 600 - - - - - 10 1050 600 450 60 45 105 45 20 1450 600 850 30 42.5 72.5 40 30 1800 600 1200 20 40 60 35 40 2100 600 1500 15 37.5 52.5 30 50 2450 600 1850 12 37 49 350 60 2850 600 2250 10 37.5 47.5 40 70 3300 600 2700 8.57 38.57 47.14 45 80 3850 600 3250 7.5 40.625 48.125 55 90 4500 600 3900 6.67 43.34 50 65 100 5250 600 4650 6 46.5 52.5 75 Which time period is the firm operating? Why?
Typed plz please don't give me a AI solution I need quality solution please take care of plagiarism thanks
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
Billco had a total cost of $10,000 when it sold 200 units. It had a total cost of $14,000 when it sold 250 units. What was Billco's average total cost when it sold 250 units?
please view photo uploaded
Price and cost (dollars per client) 100.00 90.00 MC 80.00 ATC 70.00 60.00 50.00 40.00 30.00 20.00 10.00 D MR + 4 8 10 Quantity (clients per day) 2.
Consider the following data on a firm: Number of Units Sold Total Revenue (£'s) 10 20 30 40 50 60 70 100 180 240 280 300 300 280 Fixed Costs are £100, Variable costs are constant at £3 per (i) Write a table showing the price and quantity sold. (ii) Calculate the profit maximising output of the firm (iii) What are the profits at the profit maximising output? (v) unit produced. (iv) What is the average variable cost at the profit maximising output? What is the arc price elasticity of demand between 40 and 50 units?
Calculate the value of Average revenue for 4 units sold when the total revenue is $100