Explain the difference between explicit costs and implicit costs.

Q: What are the average total cost, average variable cost, average fixed cost, and marginal cost of…

A: Q=4 TC=140 TFC=50 ∆TC=140-110         =30 ∆Q =4-3       =1

Q: Suppose a short-run total cost function is given by C = 600 + 40Qº.3 + 5Q?. (a) Find out the fixed…

A: In a short-run perspective, a firm's total costs can be divided into fixed costs, which a firm must…

Q: Output Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cost Average Variable Cost…

A: Marginal cost is the additional cost incurred when output is increased by one unit. It is the ratio…

Q: When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's…

A: Economies of scale is when there is increasing returns to scale.  Diseconomies of scale is when…

Q: 1. Diminishing marginal returns refers to a situation where the of the previous worker. less than…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: 3. Characterizing Cost Functions Analytically. Consider the Cost function 100 +10Q+Q² a. What are…

A: Total cost is a sum of fixed cost and variable cost. Fixed cost is constant and variable cost…

Q: 3. Nokia sells a new budget cell phone. Based on information provided by the accounting department,…

A: Given  The average variable cost for Nokia cell phone: AVC=$30+Q           .........(1) Average…

Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.

A: Economies of scale: Economies of scale  are the cost advantage happens due to increase in…

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

Q: Suppose a firm produces cars and the minimum efficient scale is 2,000,000 cars. The inputs are labor…

A:

Q: Long-run total cost (dollars) Quantity 20 100 40 160 60 180 80 190 The cost data in the above table…

A: Economies of scale are cost advantages that the company enjoys in the form of decrease in average…

Q: Figure and Table: Variable, Fixed, and Total Costs Total cost $2,500 2,000 1,500 1,000 500 Points on…

A: Costs refer to the expenses that are incurred in the process of production of goods or services.…

Q: FIGURE 7-3 $100 90- 80 70 60 50 主 40 30 20 10 1 2 3 4 5 6 7 8 9 10 Quantity of Output Refer to…

A: please find the answer below.

Q: Figure 13-5 11 10- Cost 1 23 45 6 D average variable cost CB A 9 10 11 12 Quantity Refer to Figure…

A: There are several types of cost curves that are commonly used in economics to analyze the behavior…

Q: QUESTION 7 If a firm increases all of its inputs by 10 percent and its output increases by 10…

A: When there is rise in both inputs (labor and capital) and outputs by the same proportion, constant…

Q: a. Complete the following cost schedule by computing marginal cost, average fixed cost, average…

A: a. we will calculate the values in the table: Output TC ($) TFC ($) TVC ($) MC ($) AFC ($) AVC ($)…

Q: 1. Individual Problems 3-7 A business incurs the following costs: • Labor: $195/unit • Materials:…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: (a) Does this production function exhibit increasing, decreasing, or constant returns to scale?…

A: (a) The production function exhibits increasing returns to scale. This is because if we double the…

Q: Refer to Figure 1. Which of the short-run average cost curves correctly depict economies to scale?…

A: Long-run average cost The long-run average cost is tangent to the falling portion of the short-run…

Q: 5. Provide the formula/calculation for the following costs: Average Total Cost, Average Fixed Cost,…

A: Costs, in general, explains the producer’s expenditure in producing a commodity it includes various…

Q: Cost LRAC A Quantity Figure 1 Long run average cost curve for a firm Figure 1 shows a long run…

A: We have to find Long run average cost curve.

Q: Suppos is q2 = 350 400 450 ||« m's production process exhibits constant returns to scale. Based on…

A: The returns to scale is used to determine by how much does the output increase when all the inputs…

Q: 1) In short, what does the production function describe? A .how a firm maximizes profits. B. how a…

A: Production refers to the process of creating goods or services through the conversion of inputs…

Q: 4. A firm has production function q = KL. The wage and rental rates are both 10. Does this…

A: The production function is a concept in economics that describes the relationship between inputs and…

Q: a. Define explicit costs and implicit costs.   b. Assume the following: * A firm buys a unit of…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: 7. Which of the following are variable costs of production? Select one: A. the cost of electricity…

A: Cost refers to the expenses that incur in the process of production of goods and service. There are…