Aaron hires students to do housecleaning at $400 a week. He leases equipment that costs $400 a week.LaborOutput(houses per week)The table gives Aaron's total product schedule.(students)The gap between total cost and total variable costbecause3.....2712O A. is the same at all quantities of output;total cost minus total variable cost equals average fixed cost and average fixed cost is constant in theshort run418236.27B. differs as the quantity of output increases;the total cost curve and the total variable cost curve are U-shapedC. is the same at all quantities of output;total cost minus total variable cost equals total fixed cost and total fixed cost is constant in the shortrunD. differs as the quantity of output increases;total cost per unit minus total variable cost per unit is constant.....

The markets are the places where the sellers, and the buyers operate with each other. In the…

Aaron hires students to do housecleaning at $400 a week. He leases equipment that costs $400 a week. Labor Output (houses per week) The table gives Aaron's total product schedule. (students) The gap between total cost and total variable cost because 2 3 O A. is the same at all quantities of output; total cost minus total variable cost equals average fixed cost and average fixed cost is constant in the short run 4 5 6 27 O B. differs as the quantity of output increases; the total cost curve and the total variable cost curve are U-shaped OC. is the same at all quantities of output; total cost minus total variable cost equals total fixed cost and total fixed cost is constant in the short run O D. differs as the quantity of output increases; total cost per unit minus total variable cost per unit is constant o37288

Aaron hires students to do housecleaning at $400 a week. He leases equipment that costs $400 a week. Labor Output (houses per week) The table gives Aaron's total product schedule. (students) The gap between total cost and total variable cost because 2 3 O A. is the same at all quantities of output; total cost minus total variable cost equals average fixed cost and average fixed cost is constant in the short run 4 5 6 27 O B. differs as the quantity of output increases; the total cost curve and the total variable cost curve are U-shaped OC. is the same at all quantities of output; total cost minus total variable cost equals total fixed cost and total fixed cost is constant in the short run O D. differs as the quantity of output increases; total cost per unit minus total variable cost per unit is constant o37288

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following is a table of cost for a toy manufacturing firm. The variable input is labor. Use this table to answer the following question. Average variable Average fixed cost Average Variable Quantity of toys Total costs cost total cost costs $0 $20 $10 A $40 В In the cell B, which number is correct? 10 O 5 none of these options is correct O 15
O Question 2 The average total cost curve is intersected at its minimum point by the average variable cost curve only. the marginal cost curve only. both the average variable cost curve and the marginal cost curve. neither the average variable cost curve or the marginal cost curve. T OL
4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of operation. Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to scale, and diseconomies of scale. Identify each of these sections of the cost curve and explain why each section exemplifies its specific type of return to scale.
22 23
Labor (workers) Output 1 20 50 3 70 4 80 85 The table shows daily output for small pizzeria based on the number of workers hired. Suppose fixed costs are $20 and labor costs are $40 per worker. The average total cost of producing 80 units equals $2.25 per unit. $0.25 per unit. $1.50 per unit. $0.75 per unit
(b) Calculate the missing total variable cost figure in the table shown below and clearly show your workings. Quantity (units) Total Variable Cost Marginal Cost 13 ?? 27 115 7
(Figure: Determining Marginal Returns) Based on both the table and the figure, adding a third worker leads to marginal returns. Average Product and Marginal Product Output 1 2 3 14 Labor 5 6 17 12 10 8 6 4 8 9 10 0 -2 BAY constant 2 Total Product O negative 5 12 21 31 40 48 54 57 57 increasing 54 diminishing 4 MP 5 7 9 10 9 8 6 3 0 3 6 Workers AP 5 6 7 7.75 8 8 7.71 7.12 6.33 5.4 8 10 12
Table 3 Gallo Cork Factory Number of Workers 1 2 3 4 5 6 7 Number of Machines 2 2 2 2 2 2 2 Output (corks produced per hour) 5 10 20 35 55 70 80 Select one: O a. the fifth worker O b. the fourth worker O c. the third worker O d. the sixth worker Marginal Product of Labor Cost of Cost of Workers Machines Total Cost Refer to Table 3. Gallo's cork factory experiences diminishing marginal product of labor with the addition of which worker?
Construct the average fixed cost, average variable cost, and average total cost schedules and the marginal cost schedule.
Question When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them? Graphical representation of the short-run total cost curve showing total cost, fixed cost, variable cost: and The marginal cost and average total cost:
Please help with this.
(Table: Production Function for Quinoa) Use Table: Production Function for Quinoa. Assume that the fixed input consists of 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day. The total cost of producing 75 bushels of quinoa is: Table: Production Function for Quinoa Number of Workers Bushels of Quinoa 10 1 2 3 4 5 transcript O $7,650. O $1,225. O $650. O $1,150. 10 25 45 60 70 75