A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to crease cash flows in the first year by $25,000 and in the second year by $30,000. The firm's current fixed costs are $9,000 and curren marginal cost are S15. The firm currently charges $18 per unit. the interest is 5%, should the firm undertake the investment? O a. Yes, since NPV=0 O b. Yes, since NPV<0 Oc. Yes, since NPV>0 O d. No, since NPV=0

Q: According to the Law of Diminishing Returns As more units of a variable factor are used with a fixed…

A: The proportional change in output (goods or services) owing to changes in the inputs of production…

Q: Assume a firm has fixed costs of $80 and variable costs as indicated in the table below. Complete…

A: Average cost represents the per unit cost of production. Marginal cost is the incremental cost of…

Q: Quantity 0 1 2 3 4 5678 No 9 10 TC TFC TVC ATC AFC 20 13 52 32 8 53 63 29 AVC 8 6.5 What is average…

A: Before selling the good to the market, one has to produce it. Production of the good has various…

Q: Total profit: $ Total costs/revenues The graph below shows the TC and TVC curves of Galbraith's…

A: Maximizing profits within a company, output is the degree of production that yields the maximum…

Q: 4. A manufacturing company leases for $100,000 per yr a building that houses its manufacturing…

A: A "break-even point" (BEP) is a point in economics and business where the cost or expense and…

Q: Question 19 What is the marginal cost of the fourth unit? Q 1 FC VC 50 50 2 3 4 50 588 60 ○ 70 ○ 80…

A: 1. **Identify the relevant information**: We're given a table showing various costs at different…

Q: Which statement is correct? Choose an answer O 1. The average fixed costs increase with the…

A: In long term, the price must be higher than the average cost  that means contribution margin must be…

Q: 7. What is the total cost for the firm if they decide to produce 240 units? $ 8 540 540 140 530 120…

A: Total cost (TC) is a comprehensive financial measure that represents the total economic cost…

Q: Price MC ATC P1 P2 P3 PA D. Q, Q2 Quantity/time MR Refer to the above figure. Economic profits for…

A: Option (d) is correct.

Q: Consider a live performance company. The company plans to provide a concert for four weeks. The…

A: Calculate the total profit for each week if the company uses a single price. Profit is obtained by…

Q: 3. A firm has fixed cost of $90.00 and variable costs as indicated in the table below. Complete the…

A: Here we have to calculate the TC, AFC, AVC, ATC and Marginal Cost.Total Costs-Total costs represent…

Q: (Table) Based on the table, Output is the marginal cost when moving from forty to forty-eight units.…

A: TFC=$500 TC=TVC+TFC MC=Change in total costChange in output

Q: 5. A firm has the capacity to produce 1,000,000 units of product per year. At present, it is able to…

A:

Q: Which of the following statements is most correct? The quickest way to determine whether the firm…

A: In an economy, when a firm operates its business, it maintains different types of records of all the…

Q: Problem 1Advanced Electronics (AE) is a computer chip manufacturer. It has monthly fixed costs of…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: management of a firm wants to introduce a new product. The p -$2,850+$2.75Q that is the break-even…

A: At break even point total sales is equal to the total cost and there is no loss and no profit and…

Q: project's simple payback period is most nearly A. 3 years. B. 4 years. C. 6 years. D.5 years.

A: The payback time frame is the timeframe it takes to recuperate the expense of a venture or the time…

Q: Wing Al corporation produced and sold 600 units of output. The total cost of production was $30,000.…

A: Given information: The output produced is 600 units.  The total cost of production was $30,000 Each…

Q: What is the rule for maximizing profit for a competitive firm?

A: Since you have posted multiple questions we will provide answer for the first question as per our…

Q: When we are discussing Cost Volume Profit analysis how do costs behave? Why is cost behavior…

A: By examining costs behavior and the ways in which costs are predicted, and then we consider the…

Q: In Figure 7.13, show that there are wage and cost of capital services such that the firm is…

A: Wage expense refers to the cost generated by a firm to compensate employees and contractors for work…

Q: Input Total Product 20 32 42 50 55 58 8. 58 56 1. From the table given above, answer the following…

A: AP is the average product which is the ratio of total product and input.MP is the Marginal product…

Q: The Bluebird Factory reported $1,000,000 in total revenues and $60,000 total variable costs during…

A: Given: The total revenues are = $1,000,000 The total variable costs are = $60,000 To Find: The…

Q: A motor vehicle assembly plant requires the use of both capital and labour. The Telsa manufacturing…

A: Diminishing return states that as the number of an input increases than the total product will…

Q: The term productive efficiency means This is important because The term allocative efficiency means…

A: Productive efficiency ensures that the firm produces at efficient scale. Allocative efficiency…

Q: 3. A firm has fixed cost of $90.00 and variable costs as indicated in the table below. Complete the…

A: The cost is defined as the expenditure that a firm or business has to bear on producing a good or…

Q: hawhas the 'gig economy' impacted variable and fixed costs for businesses.Illustratewith exmple…

A: The gig economy is a term used to describe the growing economic sector of businesses that rely on…

Q: 3. Jago Co. has 2 products that use the same manufacturing facilities and cannot be subcontracted.…

A: This is a circumstance that will only last a few days or short run. The company should expand in the…

Q: Figure 7-1 $49 $43 $35 $25 FC 12 Reference: Ref 7-1 Given the curves shown in Figure 7-1, the…

A: Marginal cost refers to an additional cost of producing one more unit of output. It measures the…

Q: 3. A firm has the capacity to produce 1,000,000 units of product per year. At present, it is able to…

A: Production refers to the goods and services that are produced in an economy.  Production is the…

Q: An economy is in the steady state if a) depreciation is zero. O b) there are no diminishing returns.…

A: When talking about steady-state, it is the concept developed for Solow growth model to explain the…

Q: Are fixed costs considered to be anticipated or unanticipated costs? Are variable costs considered…

A: Fixed cost and variable costs are both parts of production costs, which indicate the total spending…

Q: PLS HELP ASAP ON BOTH

A: Question 2:The ABBA Canadian Equity Fund is set up as a mutual fund trust. This means that it…

Q: Output Total Fixed Cost Total Variable Cost $9 $0 1 $9 $5 $8 $9 $9 $10 4 $9 $11 $9 $12 dollars. The…

A: Total variable cost increases with increase in production and fixed cost is independent of output.

Q: Which of the following does NOT represent a fırm's explicit costs? O the firm's total accounting…

A: Explicit cost is the actual monetary expenditure to run a business Implicit cost is the opportunity…

Q: 0. One of the products ofa company has a price of$3 per unit. Its fixed costs are $200,000 month and…

A:

Q: In the basic EOQ model, if total annual demand = 6000 units per year, ordering cost per order =…

A: Economic order quantity (EOQ) is the ideal quantity that a company should purchase to decrease…

Q: If you add average variable costs and average fixed costs, you get average total costs. True False

A: Cost is the amount of expenditure incurred on goods or services. It is incurred for the hiring of…

Q: Question 19 What is the marginal cost of the fourth unit? Q 1 FC VC 50 50 2 3 4 50 588 60 ○ 70 ○ 80…

A: Marginal cost (MC) represents the additional cost incurred by producing one more unit of a good or…

Q: Marginal cost is given by 12 e0.5Q. Fixed cost is 56. What is the total cost? O a. 6e0.5Q + 56 O b.…

A: Given MC = 12e0.5Q            FC = 56

Q: An industry consists of four firms with annual sales of $4,000, $6,000, $5,500, and $7,000. What is…

A: Herfindahl-Hirschman Index refers to the sum of square of market share percentages by each firm in a…

Q: Question 4 How many metric tons of berries would Greeh Berries Farm produce in order to Maximize…

A: Green Garden Berry farms (quantity) Quantity of farmworkers TVC TFC TC MC 1 3 45 20 65 - 2 5 75…