Ball Bearings, Inc., faces costs of production as follows:Total Fixed CostsTotal Variable CostsQuantity(Dollars)(Dollars)1001100501007031009041001401002006.100360Complete the following table by calculating the company's total cost, marginal cost, average fixed cost, average variable cost, and average total costat each level of production.Total CostMarginal CostAverage Fixed CostAverage Variable CostAverage Total CostQuantity(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)1234 The price of a case of ball bearings is $50. Seeing that he can't make a profit, the company's chief executive officer (CEO) decides to shut downoperations.The firm's profit in this case is $(Note: If the firm suffers a loss, enter a negative number in this cell.)True or False: This was a wise decision.TrueFalseVaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of ballbearings, because marginal revenue equals marginal cost at that quantity.At this level of production, the firm's profit is(Note: If the firm suffers a loss, enter a negative number in this cell.).True or False: This is the best decision the firm can make.O TrueFalse

Total Cost = Total Variable cost + Total Fixed costAverage cost = Total Cost/Quantity Marginal cost…

Ball Bearings, Inc., faces costs of production as follows: Total Fixed Costs Total Variable Costs Quantity (Dollars) (Dollars) 100 100 50 2 100 70 3 100 90 4 100 140 100 200 100 360 Complete the following table by calculating the company's total cost, marginal cost, average fixed cost, average variable cost, and average total cos at each level of production. Average Fixed Cost (Dollars) Average Variable Cost (Dollars) Average Total Cost (Dollars) Total Cost Marginal Cost Quantity (Dollars) (Dollars) 2 4 5

Ball Bearings, Inc., faces costs of production as follows: Total Fixed Costs Total Variable Costs Quantity (Dollars) (Dollars) 100 100 50 2 100 70 3 100 90 4 100 140 100 200 100 360 Complete the following table by calculating the company's total cost, marginal cost, average fixed cost, average variable cost, and average total cos at each level of production. Average Fixed Cost (Dollars) Average Variable Cost (Dollars) Average Total Cost (Dollars) Total Cost Marginal Cost Quantity (Dollars) (Dollars) 2 4 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Calculate average variable Cost if total variable cost is $1000 and output is 20
Refer to the table below. Note that the first column shows variable costs. Quantity Cost 0 1 2 3 5 6 (in dollars) Costs 0 15 35 60 90 Fixed Total Average Costs Total Costs (in (in (in dollars dollars) per unit) dollars) 160 40 40 40 55 55 : 40 75 37.5 40 100 125 40 33.3 40 130 32.5 165 33 40 200 33.3 Average Variable Costs (in dollars per unit) 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) 15 20 25 30 35 40 If the firm produces 5 units that it sells at a price of $30.00 each, what will its profits or losses equal? losses equal $15 profts equal $15 profts equal $25 losses equal $25
. Given the following fixed and variable costs and the volumes, calculate the total andunit costs.
2. As an employee of the Rays-R-Us Corporation (a solar panel company), you have been asked to determine the nature of their long-run cost structure. Some cost data has been collected for you and appears in the table below. Quantity of Generators Labor Costs Tools Cost $2 $4 $7 $8 $15 $24 $28 $41 $65 $80 Total Cost Long Run Average Cost $10 12 14 16 20 30 42 1 4 5 8 9 10 70 100 (a) Fill in the missing values in the table. (b) Graph the firm's long-run average cost curve below. (c) Determine the range of output levels over which there exists economies and diseconomies of scale, and mark these ranges on your graph.
Question 7 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80? $12.50 $1,000 $11.25 O $10.83 20
The Cooper Company has the following information on costs. Quantity Fixed Cost Variable Cost 3 200 10 4 200 20 5 200 30 Calculate the average variable cost of producing 5 units. Round your answer to two decimal places if necessary.
Imagine a smartphone company has the following costs when they produce 200 phones: $50 in average fixed cost and $140 in average total cost. What would be the total variable cost for this company when they produce 200 phones? Type your numeric answer and submit
The following is a cost schedule for A & E Manufacturing Company Ltd for product X. Quantity (Q) Fixed Cost Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 100 1 30 2 25 3 60 4 100 18 Required: Calculate the missing costs and complete the schedule. On one diagram, plot and label the Marginal Cost curve, the Average Fixed Cost curve, Average Variable Cost Curve and the Average Total Cost curve. Explain the relationship which exists between the Marginal Cost Curve and the Average Total Cost Curve. What accounts for the ‘U’ shape of the Average Total Cost Curve?
Complete the cost schedule below for the Ozzie Ugg Boot Co. Total product (Q) Total fixed cost (TFC) Total variable cost (TVC) Total Cost (TC) Marginal Cost (MC) Average fixed cost (AFC) Average variable cost (AVC) Average total cost (ATC) 0 $50 $50 C 1 $80 D 2 B $95 E 3 A $105 F 4 $110 I G 5 $130 H 6 $160 J List the values that you obtained for the letters A to J in your answer (no more than 2 decimal places). What is the most efficient level for the company to produce its product? Why?
Question 6 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Variable Cost (AVC) when Output (Q) is 60? $7.50 $6.25 $5.00 $450 20
The table below shows the weekly cost of producing cowboy hats. Complete the table by filling in the missing values. Instructions: Round your answers to 1 decimal place. Cowboy Hat Production Costs Total Fixed Cost (dollars) $2,000 Total Variable Cost (dollars) Total Cost (dollars) $2,000 Average Fixed Cost (dollars) Average Variable Cost (dollars) Average Total Cost (dollars) Output $0 10 300 24 $4 $230 20 2,460 23 123 30 660 66.7 22 40 2,900 72.5 50 1,200 24
For each lettered space in the following table, determine the appropriate dollar amount.