Assume that a firm can produce product X,Y, or Z with the resources it currently employs. These resourcescost the firm a total of $50 per week. Assume that the firm's costs cannot be changed. The market prices andthe quantities of X, Y, and Z are given below.ProductMarket priceCostOutput$Revenue$4.002050Y3.0010502.005050Refer to the above table. Which product will the firm produce?а) Х.O b) Y.O c) Z.O d) None of the above.

Firms operating in a market incur fixed costs and variable costs. Fixed costs refer to the type of…

Answered: Assume that a firm can produce product…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12. A firm faces the following demand and total cost schedules, with all quantities listed on a per-month basis. Suppose that it is required to produce a whole number of items each month. Demand P ($) 20 18 15 12 8 1 2 3 4 5 Total Cost Q 1 2 3 4 5 TC ($) 5 15 30 50 75 a. How much does the firm produce, and at what price? How do you know? b. Suppose that the firm is subject to an excise tax of $5 per item sold. How much does it produce, and at what price? How do you know?
markscheme says answer is d but i think it might be an error so want to ask experts
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Consider the table above. Assume that the resource and output markets are both perfectly competitive. The equilibrium price of the resource is $12.50 and the equilibrium price of the product is $0.50. How many units of the resource will be hired by a profit maximizing firm? a. 1 unit b. 2 units c. 3 units d. 4 units e. Not enough information provided.
Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent. The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420. What is the accounting profit for the firm described above? Just give equation formula.
A company manufactures Products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for Departments I, II, and III are 1020, 1080, and 900, respectively. The time requirements (in hours per unit) and the profit per unit for each product are as follows. Product A Product B Product C Dept. I 2 1 2 Dept. II 3 1 2 Dept. II 2 2 1 Profit $18 $12 $15 If management decides that the number of units of Product B manufactured must equal or exceed the number of units of products A and C manufactured, how many units of each product should the company produce to maximize its profit?
In what way does an economist's measurement of profit differ from an accountant's? Accountants calculate total revenue differently. Accountants do NOT always include all of the opportunity costs when calculating total production costs. Economists calculate higher profits for firms as economic profit generally exceeds accounting profit. Economists do NOT always include all of the opportunity costs when calculating total production costs.
The table shows cost data for a firm that is selling in a perfectly competitive market. This firm's minimum average variable cost is $14 and has fixed costs equal to $100. Output 5 7 9 11 $30 Refer to the above cost table. If the price of the product is $26, the firm will produce loss. 7 units 9 units Select TWO answers from the choices below, one selection is the number of units produced and the second selection is the dollar amount of the loss earned by the firm. $28 $100 $0 $182 11 units ATC $34.00 30.00 30.55 33.09 O units MC $13 5 units 26 35 48 for a
ECON 4333-001 (online) Spring 2020 Homework Assignment #2-Revised MR This question is based on the figure above, which describes cost and demand conditions in the widget industry. Assume that costs functions to not vary according to market structure (competition vs. monopoly, for example). Complete the following table. All variables should be expressed in dollars. (Hint: use the Cowling and Mueller method for measuring consumer surplus and deadweight) Market Structure Price Quantity Economic Profit Consumer Surplus Dead Weight Loss Competition 500 400 Monopoly The following table illustrates the distribution of retail grocery sales in the Asheville, NC market: Market Retailer Share (%) Kroger…
Text Problem 23-4c Question Help ▼ The table below represents the hourly output and cost structure for a local pizza shop. The market is perfectly competitive, and the market price of a pizza in the area is $10. Total costs include all implicit opportunity costs. Calculate the pizza shop's marginal cost and marginal revenue at each rate of output and fill in the values in the table. Total Hourly Output and Sales of Pizzas Total Hourly Cost ($) Total Economic Profit ($) Marginal Revenue ($) Total Marginal Cost (S) Revenue (S) 1 9 10 1 11 20 9 3 12 30 18 4 14 40 26 5 18 50 32 6 24 60 36 32 70 38 8 42 80 38 9 54 90 36 10 70 100 30
Use the table below to answer the next three questions. The below table displays the production schedule for Great Balls of Fire, a food truck that sells flaming meatballs. Great Balls of Fire has a lease on the truck itself that costs $1200 per week that must be paid whether or not the food truck produces and sells any meatballs. They may hire up to three workers to produce and sell the meatballs, workers cost $600 per week. The production schedule shows you how many meatballs would be produced with the varying levels of employees. Employees Meatballs Fixed Costs Variable Cost Total Cost Average Variab Cost 0 0 0 1 300 2 500 3 600 Completely fill out the table, please round all answers to the nearest cent. Do not enter any commas, dollar signs, or units (Ex. If your calculator says 12.376, just enter 12.38.) If your answer is an even dollar amount, you don't need to include the cents (Ex. you may enter 10 instead of 10.00)
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.

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