Consider a production process where flowers are grown (the output) using gardeners (labor) and greenhouses (capital). The quantity of flowers grown per day with various combinations of labor andcapital are shown in the table below.Suppose that each gardener is paid $180 per day and the greenhouse is rented for $300 per day.Fill in total cost in the table below. (Enter your responses as integers.)Etext pagesGet more helpLaborCapitalOutputTotal Cost0101112023604804554057080a01F2F3F4F5F6&Clear allCheck answerADII4F7F8F9F10F11F12*delete

Approach to solving the question:1. Define the costs involved in production: labor and capital.2.…

Answered: Consider a production process where…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Aplia Homework: Chapter 13 Attempts Keep the Highest / 4 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 1 180 2 270 3 360 = 50 Q = 100 100 150 200 Average Total Cost (Dollars per bike) Q = 150 Q = = 200 80 80 120 120 80 80 = 250 Q = 300 360 270 180 200 150 100 Suppose Ike's Bikes is currently producing 50 bikes per month in its only factory. Its short-run average total cost is $180 per bike. Suppose Ike's Bikes is expecting to produce 50 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using…
Can total cost of the firm be zero? if yes what's the production point at this level
Suppose that Bill owns an automobile collision repair shop and the table below shows the quantity of cars repaired per month according to how many workers Bill hires. Assume he pays each worker $5,000 per month and his fixed cost equals $8,000 per month. Using the information provided, complete the table given below. (Enter your responses rounded to two decimal places.) Quantity of Workers Quantity of Cars per Month Average Total Cost Fixed Cost Variable Cost Total Cost $8,000 1 20 $ 30 3 40 50 55
Emma sells hot chocolate outside of Yankees baseball games. They have two inputs in the production of hot chocolate: (hot chocolate mix (x1, measured in kg) and labour (x2, measured in hours. The production function for hot chocolate (in liters) is: f (x1 , x2) = (x1)1/3(x2)1/3 A) Does this firm have constant, increasing or decreasing returns to scale? The cost of hot chocolate mix is w1, and the cost of labour is w2. If Emma produces "y" liters of hot chocolate the cheapest way possible, then B) How many kilograms of hot chocolate mix would they use? C) How many hours of labour? D) What is the cost function of producing this much hot chocolate?
Production Total Product Total Fixed Cost Total variable cost Total Cost Average fixed cost Average variable cost Average Total Cost Marginal Cost 0 0 1 25 2 45 3 60 4 70 5 85 6 105 7 135 8 180 9 240 10 315 Assume that fixed costs are $50, labor is the only variable input and its costs are reflected completely in the costs above. Complete the table Graph AFC, AVC, ATC, and MC Explain how increasing returns and decreasing returns are depicted in your graph If the labor input increased by $10 at every unit of production, what would be the effect on your graphs?
6. Firm's Costs 2 Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of pizzas) (Dollars) (Dollars) 280 1 320 40 2 350 70 3 380 100 4 420 140 470 190 6 530 250 The pizzeria's fixed cost is Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information on total cost. Then complete the final column by calculating the marginal cost per dozen pizzas using the information on variable cost. Quantity Total Cost Marginal Cost Variable Cost Marginal Cost Using Total Cost (Dollars) Using Variable Cost (Dollars) (Dozens of pizzas) (Dollars) (Dollars) 280 320 40 350 70 AA
Joanne sells silk screened T-shirts at community festivals and craft fairs. Her marginal cost to produce one T-shirt is $3.50. Her total cost to produce 70 T-shirts is $305, and she sells them for $7 each a. Find the linear cost function for Joanne's T-shirt production b. How many T-shirts must she produce and sell in order to break even? c. How many T-shirts must she produce and sell to make a profit of $700? a. The linear cost function is C(x)= b. Joanne must produce and sell c. Joanine must produce and sell T-shirts in order to break even, because the number of T-shirts must be a whole number T-shirts to make a profit of $700, because the number of T-shirts must be a whole number
Fill in the following cost table. For the first few rows, you can work from left to right. However, as you get to the last two rows, you will need to use the information from the right side of the table to work back to the left side. We do not calculate average costs at a quantity of 0. Q TFC TVC TC AFC AVC ATC MC 0 5,000 0 XXXXXX XXXXXX XXXXXX XXXXXX 1 3.000 3,000 2 5,000 3 11,000 4 3,250 5 4,000 Can you tell if this is the short run or long run? Can you tell which level of output yields the highest profit? If so, what is the output level? If not, explain. Economists define the “Break-even Price” as the lowest point on the average total cost curve or the lowest average total cost given in a table. What is the break-even price in this problem? Economists define the “Shutdown Price” as the…
Which of the curves in the following graph is the average total cost curve?
With appropriate examples explain how marginal cost is related only to total variable cost.

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