Please only do the multiple choice. Complete the folowing table by computing total revenue, total cost, variable cost, and profit for each of the prices listed. (Hint: Be sure to enter aminus sign before the number if the numeric value of an entry is negative.)PriceTotal RevenueTotal CostVarlable CostProfit(Dollars per ticket)(TR)(TC)(VC)(TR-TC)(Dollars)(Dollars)(Dollars)(Dollars)1,00040,000-40,000700400200Given this information, the profit-maximizing price isper ticket, andseats out of 100 will be purchased.In this case, which of the following statements are true about the market at this price-quantity combination? Check all that apply.O Total revenue is greater than variable cost.O The airline is operating at too big a loss and should, therefore, cancel this flight.O Profit is positive.O Price is less than average total cost.If fixed cost increases to $57,500, does this change the production decision of the airline in the short run?O YesO NoTrue or False: Operating a flight without full capacity should never happen in the short run because it cannot be profitable.O TrueO False Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost ofoperating a 100-seat plane for various numbers of passengers.Total CostNumber of Passengers (Dollars per flight)40,0001060,0002065,0003068,0004070,0005071,0006072,5007073,5008074,0009074,30010074,500Given the information presented in the previous table, the fixed cost to operate this flight is sAt each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for theduration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow.PriceQuantity Demanded(Dollars per ticket)(Tickets per flight)1,0007003040090200100

Total Revenue is calculated as price times quantity. Total cost consists of total fixed cost total…

Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Number of Passengers 10 30 40 50 90 100 Total Cost (Dollars per flight) 40,000 60,000 65,000 68,000 70,000 71,000 72,500 73,500 74,000 74,300 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is S Price (Dollars per ticket) 1,000 700 400 200 At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for th duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Quantity Demanded (Tickets per flight) 0 30 90 100

Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Number of Passengers 10 30 40 50 90 100 Total Cost (Dollars per flight) 40,000 60,000 65,000 68,000 70,000 71,000 72,500 73,500 74,000 74,300 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is S Price (Dollars per ticket) 1,000 700 400 200 At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for th duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Quantity Demanded (Tickets per flight) 0 30 90 100

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

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ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above
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1. Exercise 9.1 A study of 86 savings and loan associations in six northwestern states yielded the following cost function. 2.38 0.006153Q 0.000005359Q² 19.2X1 C + + (2.62) (2.84) (3.16) (3.50) where C = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q = output; measured by total assets ($ million) X1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Which of the variable(s) is (are) statistically significant in explaining variations in the average operating expense ratio? (Hint: t0.025,7€ 1.99 .) Check all that apply. X1 Q2 What type of average cost-output relationship is suggested by these statistical results? Quadratic Linear Cubic Based on these results, what can we conclude about the existence of economies or diseconomies of scale in savings and loan associations in…
Exercise Q4: A company charged RM70 to move a machine at a distance of 15km. While RM100 is imposed if the distance increased to 25km. (a) Produce linear cost equation for moving the machine. (b) Calculate the fixed cost, variable costs and total cost for 50km distance.
In line with the information including the production amount and total cost of the firm and the double (half) average technique, write the total cost function of the firm by making the relevant calculations and calculate the total cost for the production of 1150 units. .
TC 400+150Q-3Q2 +0.02Q3 400 Based on this equation, find total fixed cost calculate total fix cost -
Total cost = $4500 fixed costs = $2000 variable cost = ?
For a given commodity, the line haul cost is $13 per mile. For a trip of 200 milesand a shipment of 300 lbs., what is the cost per pound? If the shipment is increasedto 500 lbs., what is the saving in cost per pound?
E-commerce has had an explosive growth in the last year due to the pandemic. Many different retail companies with home delivery have had a significant increase in sales. Imagine such a company with home delivery by trucks. Each truck costs NOK 600 per hour including all costs. The average distance per trip is 40 KM and they deliver approximately 60 packages per trip. a. Calculate the cost per delivery. Make your own assumptions for the parameters that affect the time of the processes, like speed, loading time and unloading time. What would be their price per delivery, if they want a profit of 5%? b. Discuss the risk for the transport provider in your price calculation.
A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5000 p = 38 + (for D>1) D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units and total amount that should be produced and sold each month to maximize profit?
Consider a power system with three generators. Each generator has a piecewise linear cost function defined by the following points. Generator 1 Generator 2 Generator 3 Production (MWh) 100 200 300 400 200 400 600 800 100 400 700 1000 Cost ($) 915 1760 2635 3540 1870 3530 5230 6970 1060 3460 6040 8800 The min/max production of each generator corresponds to the min/max production values in the table (i.e., Generator 1 produces at least 100 MWh and no more than 400 MWh). (a) Plot the inverse supply function for this system. (b) If the demand is completely inelastic and equal to 1600 MWh į. compute the electricity price. ii. calculate the gross consumer surplus, consumer surplus, the producers revenue, the producers profit, and the global welfare. iii. determine the production level, cost, revenue, and profit for each generator.
What is the total cost do producing 100 units 80 90 110 120