Answered: At what output level is variable costs…

At what output level is variable costs per unit at a minimum? Supporting Materials Steel Costs $ per ton MC ATC $175 AVC $115 $70 4,000 9,000 11,000 16,500 Steel Outp ut (in tons)

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: 100 90 80 ATC 70 50 30 AVC 20 MC 10 + 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans)…

A: In perfect competition we assume that the marginal cost curve is same as the supply curve. The below…

Q: Total variable cost is 0 at zero level of production True/Falss

A: # Total cost incurred by the firm is the sum of both fixed and variable costs. Total.fixed cost is…

Q: The cost, in dollars, of producing x yards of a certain fabric is C(x) = 900 + 12x-0.1x² + 0.0005x³…

A: Cost: Cost refers to the expenses or expenditures incurred by a business or individual to produce…

Q: Which calculations would be used to estimate resource costs for 12 months

A: The objective of the question is to understand the calculations required to estimate the resource…

Q: When the production volume (Q)is(100)units the total costs (TC)is (1500)omani RIyals and fixed costs…

A: The variable cost can be calculated as follows:

Q: If explicit cost are $4400 and the accounting profit is $6000 Calculate the value of total revenue

A: Given: Explicit cost=$4400 Accounting profit=$6000 To find: Total revenue

Q: nswer the question on the basis of the following cost data. Output Total Cost 0 $ 50 1 60 2 68 3 73…

A: The objective of the question is to calculate the average variable cost (AVC) of producing 4 units…

Q: a How many units would the company have to sell to have a profit of AED 150,000?

A: Total cost is the cost that includes fixed cost as well as the variable cost of the goods and…

Q: Finf the AFC if the Total Fixed cost is 400 and the Output is 20?

A: Output is an amount of labor and products created in a particular time span (for example, a…

Q: What is the total costing based on the following shipment? Dimensions: Weight: 4 pieces, 70 in L x…

A: Origin Pick Up Fee: The first component of the total cost is the origin pick-up fee. This fee is…

Q: Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of…

A: The measure that depicts the point total cost is in turn equal to the total revenue is known as the…

Q: The following cost-output data were obtained as part of a study of the economies of scale in…

A: Answer1:The shape of the curve of an output (enrollment)-cost graph is given below:

Q: Use the values in the table below to answer the following questions. TC ATC MC 1 29.89 29.89 6 -(…

A: Total cost is calculated from summation of fixed cost and variable cost. It is also calculate by…

Q: Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200…

A: Break-even Analysis- Breakeven is the point at which a firm must cover its costs of production.…

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: A product that is very labor intensive assembled at Boyds Aero Structure in Memphis has an average…

A: Labor Cost: The whole amount of money paid to employees, including basic pay, benefits like health…

Q: • Total revenue $ 500,000• Wages and salaries $ 40,0000• Forgone salary $ 80,000• Interest paid $…

Q: Jenkins Ltd manufactures remote control cars which sells for $500 each. The fixed cost is $70000 and…

A: Fixed costs are the costs which can't be altered in the short run and on the other hand the variable…

Q: Hi, what is the Average and Marginal Costs per RVU for the below scenario? 1. Calculate the costs 2.…

A: Relative value unit (RVU) is used by Medicare to determine the amount of reimbursement to providers.…

Q: If explicit cost are $4400 and the accounting profit is $6000 Calculate the value of total revenue

A: Total revenue is the income earned by a firm by selling all units of a good.

Question

At what output level is variable costs per unit at a minimum?
Supporting Materials
Steel Costs
$ per ton
MC
ATC
$175
AVC
$115
$70
4,000
9,000
11,000
16,500
Steel Outp ut (in tons)

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

If total revenue is $3600 and the per unit price is $30 What is the output sold
A privately owned summer camp for youngsters has the following data for a 12-week session.(a) Develop the mathematical relationships for total cost and total revenue. (b) What is the total number of campers that will allow the camp to just break even? (c) What is the profit or loss for the 12-week session if the camp operates at 80% capacity? (d) What are marginal and average costs per camper at 80% capacity? (e) Would it be ethical to charge campers different rates depending on their family’s socioeconomic status? Identify and describe two points pro and two points con for such a policy.
The variable cost for the small business is shown below. What is the marginal cost and average cost at a volume of 14 units? Cost $8000 $6000 $4000 $2000 $200/unit Volume marginal cost: $200/unit, average cost: $476/unit O marginal cost: $200/unit, average cost: $300/unit O None of them marginal cost: $300/unit, average cost: $800/unit $300/unit 10 Total cost Variable cost Fixed cost 15
F Given Cost and Revenue functions C(q)=q³-8q² +59q + 5000 and R(q) = -3 -39² +2600q, what cost is incurred when marginal profit is $0? The costs are $ (Round to nearest cent.)
The cost, in millions of dollars, of building a three-story high school in NewYork State was estimated to be:   2C x x x x      1.7 0.14 0.0001 20 400where x is the number of thousands of square feet. Suppose that you arecontemplating building a for-profit three-story high school and estimate thatyour total revenue will be $0.2 million dollars per thousand square feet.(a) What is minimum area for a three-story high school in New YorkState, that this model covers? (b) What is the variable cost of building a three-story high school in NewYork State? (c) What is the fixed cost of building a three-story high school in NewYork State? (d) Determine the profit function,P x( ), for building a three-story highschool in New York State? . (e) Determine,P(250) , for building a three-story high school in New YorkState, and interpret the result. (f) How many thousands of square feet should a three-story high schoolbuilding in New York State be in order to break even?
Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for x units per year. (c) What is the “breakeven” level of x? (d) If you sell 1500 units this year, will you have a profit or loss? How much? (e) At 1500 units, what are your marginal and average costs?
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.
(1) The revenue for a product is R(x) = -0.004x? + 21x cost is C(x) = 0.02x + 38, for x units produced and sold. (a) Find the marginal profit for 2800 units. (b) Should output be increased or decreased to generate a higher profit? 6200 and the
If fixed cost is $2100 and the output is 30 units Find AFC
A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets 100 200 300 400 500 600 Total cost (thousands) Price per bracelet $215 $7900 $420 $7400 $625 $5900 $820 $5000 $1015 $4200 $1205 $3600 (a) of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $
Small and medium sized contractors are most likely to keep ony____on staff
What’s the the total fixed costs 8 10 12 Or 15