Consider the case of a manufacturing company which produces and sells brand pens. The selling price is $20 per pen, the total fixed operating cost is $2 million, and the variable cost per unit is $10, the total fixed financing cost is $500,000. How many pens should the company sells so it would neither make a profit or loss? O a. 4,000,000 O b. 20,000,000 O c. 200,000 d. 25,000

Q: Why do average variable costs eventually rise if a company's output increases enough? O Diminishing…

A: Costs refer to the expenses that firms incur to purchase raw materials and the factors of production…

Q: Lisa quit her $40,000- per- year job to start her own economics consulting firm. At the end of her…

A: Explicit cost is the actual monetary spending. Implicit cost is the opportunity cost of doing a…

Q: Which of the following statements is false? O a. Fixed costs exist in the short run, but not in the…

A: The total cost of production (TC) is the lowest cost of producing a certain quantity of output. This…

Q: 3514e77ebfcb001ff309cb Chapter 7 - Production, Cost and Industry Structure OPEN The table below…

A: Total Cost refers to total cost or expenses incurred for producing goods and services. Fixed Cost…

Q: Output (Q) 150 200 Total Fixed Cost $500 $500 Total Variable Cost $400 Select one: O a. $2.67 O b.…

A: The term "average cost" refers to the price per unit produced throughout a production run. It…

Q: What is the quantity that will minimize the average total cost? 04 O 7.5 20 O 11

A: The Average total cost refers to the per unit cost of production. ATC = TC/Q The ATC includes both…

Q: In economics, how long is the long run? O 5 years or more O More than 12 months O 24 months or…

A: Mainly, there are two types of run in economics. 1. Long run 2. Short run

Q: QUESTION 10 If a Cobb Douglas technology (with factors having strictly positive marginal product)…

A: Cobb Douglas's production function depicts the technological relationship between the amount of…

Q: SDF

A: Factory overhead allocation methods are techniques used to assign manufacturing overhead costs to…

Q: Refer to the table to the right which shows cost data for Lotus Lanterns, a producer of whimsical…

A: Total cost is the sum of variable costs and fixed costs. Variable cost is that part of the total…

Q: The following are cost data for four different size plants available to a competitive producer:…

A: Market is a place for buying and selling of goods and commodities. When the demand and supply of…

Q: Given the data provided in the table below, what will the fixed costs equal for production at…

A: Fixed costs, also known as indirect costs or overhead costs, are business expenses that remain…

Q: Exhibit 23-8 Price and Col (dk) Price and Co (akin) 11 10 ** AVC 0 11 10 O Fm A 70 90 100 150…

A: The market is characterised by a large number of sellers and buyers with homogeneous products. The…

Q: In the Widgit industry, fixed costs are more than marginal cost. Also, Average Total Cost increases…

A: Marginal cost guides businesses in optimizing production and pricing. It helps gauge the extra cost…

Q: Figure 18-1 OUTPUT (Units) 28 71 26 23 8 1 2 3 4 LABOR (Number of workers) 5 6 Refer to Figure 18-1.…

A: Total product is the total no. of output produced by all the labor hired.  Marginal product is the…

Q: COST QUANTITY OF OUTPUT TC Refer to Figure 13-3. Which of the following can be inferred from the…

A: Diminishing marginal utility alludes to the peculiarity that each extra unit of gain prompts a…

Q: Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are…

A: In a market with perfect competition, the market determines the price. The company determines the…

Q: 100 80 270 322 515 $5,500, and its profit amounts to $20,375. O $5,750, and its profit amounts to…

A: At the point where quantity (Q) equals 515 units in the graph, the average total cost (ATC) is $125,…

Q: Wing Al corporation produced and sold 600 units of output. The total cost of production was $30,000.…

A: Given information: The output produced is 600 units.  The total cost of production was $30,000 Each…

Q: Answer the question on the basis of the following cost data. Output Total Fixed Cost Total Variable…

A: Marginal cost:Marginal cost is the additional unit that is added to the total cost. It is…

Q: The Bluebird Factory reported $1,000,000 in total revenues and $60,000 total variable costs during…

A: Given: The total revenues are = $1,000,000 The total variable costs are = $60,000 To Find: The…

Q: 2. 3 pts Question 6 Table 5.1 Total Total Cost Output 0. 000 0 1. 3,500 3. 4 000' 4,500 5. 5,200 9.…

A: find below the answer

Q: Remi owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last…

A: Total revenue refers to the total amount the seller earns by selling the goods. Total revenue can be…

Q: #Units Produced 0 1 2 لا S A Use Table 4-3 200. 110. 70. Total Revenue 260. 0 600 780 What is the…

A: Average cost, also known as average total cost (ATC), is the total cost of producing a certain…

Q: An ag firm is looking to produce 30 units of output. If the firm were to operate at the least-cost…

A: Required Q=30, w=10 r =50

Q: The table below shows the computer server installation options and their benefits and costs for a…

A: As the table shows the cost of installing 1 server is $900 and then for the installation of 2nd…

Q: Assume that the marginal cost of production is less than the average variable cost. Can you…

A: Average Variable Cost refers to the variable cost per unit of output. It can be calculated by…