Explain why sunk costs should not be taken into account in decidingwhat to do next.

Q: he marginal cost of driving a mile is $0.33. (Round your response to two decimal places) an deciding…

A: The answer is as follows:-

Q: Explain in words why the Law of Diminishing Marginal Returns implies that there are increasing…

A: Law of diminishing marginal returns states that, as the production is continuous using factor of…

Q: please analyze interaction of marginal cost and average cost numerically and derive the formula of…

A: C = 9720 + 500q - 1.5q2 + 0.005q3 Average cost (AC) = C/q = (9720 / q) + 500 - 1.5q + 0.005q2…

Q: 13.03 Homework • Answered If the average variable cost of producing 4 jeans at Jerry's factory is…

A: We know that, Total Cost(TC)= Total Fixed Cost(TFC)+Total Variable Cost(TVC),Average Variable…

Q: Why the average fixed cost curve does not touch the output axis ? YA AFC Output Cost

A:

Q: Answer the question on the basis of the following cost data. Output 0 1 2 3 4 5 6 7 What is the…

A: The worth of goods and services in the market is determined by their cost, This includes various…

Q: Define the term Variable-cost behavior?

A: Variable cost is the cost that varies according to the level of output.

Q: If a firm's average variable cost curve is rising, its marginal cost curve must be

A: If a firm`s average variable cost curve is rising, its marginal cost curve must be

Q: Are all fixed costs also sunk costs?

A: Sunk Cost: It refers to the cost that is once incurred can’t be recovered.Fixed Cost: It is the cost…

Q: a) True or False? Short-run average total cost curves have an "U the law of diminishing marginal…

A: The Law of Diminishing Marginal Returns posits that as one input is increased while others are held…

Q: Why is the average cost curve U-shaped?

A: The total cost curve shows the cost associated with every possible level of output, thus if we…

Q: As a firm expands its output, its average fixed cost does which of the following? O It declines…

A: Average Fixed Cost is the total fixed cost per unit of output.  AFC = TFC/Q

Q: Is mo represented by this graph? 1000 500 333 250 200

A: Fixed cost remains same at each unit of output production Variable cost keeps changing as output…

Q: QUESTION 5 The marginal cost curve passes through the minimum point of the average fixed cost curve.…

A: The marginal cost is the cost of producing additional output. It helps to evaluate the revenue and…

Q: Never Flat Soda sells cans of soda for $1.50. They sell one more can of soda and make an additional…

A: Step 1:Step 2:Step 3: Step 4:

Q: if marginal cost is rising with increasing output, averags cost must also be rising. true or false ?…

A: False. This sentence contains the statement that average cost of production must also rise if…

Q: What is difference between fixed and variable cost in short run? How does this result in the classic…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: I am trying to figure out how to do the marginal cost and how to get the total cost answers w what…

A: As per the guidelines, we only answer one question at a time. So, I am answering the first one.…

Q: 2. The total cost is given by TC=y² + 1. a. Write an equation for each of the following: FC, AFC,…

A: Total cost function is the function of output which is the sum of both fixed cost and the varaiable…

Q: Which of the following is also known as the firm's planning curve? The total cost curve O The…

A: Over the long run, all inputs are variable and firm can change its plant size according to the…

Q: 3 When the inputs price ratio (sliope of cost line) is greater than the MRTS, (MPK/PK > MPL/PL) the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A manufacturer can produce 5,130 cell phones when a dollars is spent on labor and y dollars is spent…

A: Cost refers to all types of expenses that incur in the production process. It can be variable cost,…

Q: What is the difference between implicit and explicit costs? Why do economists include both implicit…

A: Each firm in any industry is driven by profit motive. The goal of a firm is to maximize its sales…

Q: 800 Is 720 640 SRATC, 560 480 SRATC, 400 320 SRATC, 240 160 LRATC 80 100 200 300 400 500 600 700…

A:

Q: To the economist, total cost includes Multiple Choice O O O O explicit and implicit costs. neither…

A: Total cost is an economic measure that sums all expenses paid to produce a product, purchase an…

Q: . Why is the Average Total Cost curve U shaped?

A: Average Total cost in economics is the cost that indicates how firms choose to price their…

Q: An economist would draw no such conclusions. The essential economic question is how resources are…

A: To summarize above pictures, it is important to know some definitions like : IMPLICIT COSTS are the…

Q: 2. Consider a perfectly competitive industry where each firm has the cost structure described above.…

A: In a competitive market, the equilibrium price and quantity are determined by the intersection of…

Q: Average total costs are falling Average total costs are rising Average total costs are minimized O…

A: Average total cost is alluded to as the aggregate of all creation costs partitioned by the total…

Q: Assume that Peter's short run Total Cost Curve is TC = 20,000q- 200q² +q*. Calculate his (short run)…

A: Average total cost is total cost divided by quantity.  ATC = TC / q => ATC = (20,000q - 200q2 +…

Q: Consider the three figures below, depicting possible cost functions for a firm. The horizontal axis…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: Hi, I am studying chapter 11 from Microeconomics 21st edition. I am still confused about a certain…

A: The marginal cost curve of a firm cut the average total cost curve at its minimum point. In initial…

Q: Why should sunk costs be ignored for decision making? Give an example of why it makes sense to…

A: Sunk cost are those cost which have been caused and the sum spent can not be recovered.since the…

Q: “Sunk cost is a fixed cost, but not in the long term.” Is this statement true or false? Explain!

A: In an economy, the cost is classified in different forms according to its effect on organizational…

Q: If average total costs increase when the output level increases, then there are diseconomies of…

A: The expenses that are being incurred for running a business and carrying out its various…

Q: Can total cost of the firm be zero? if yes what's the production point at this level

A: Total cost of the firm is the combination of fixed cost of the firm such as rent of the workplace…

Q: Why does the marginal product curve have an inverted “U” shape?

A: Total product is the total no. of units produced by using the inputs.  Marginal product is the…

Q: What is the difference between economic profit and accounting profit?

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Consider a company using the economic production quantity model. a. Derive the percent change of…

A: The total cost for the economic production quantity model is can be derived by finding out the total…

Q: 2. Consider a perfectly competitive industry where each firm has the cost structure described above.…

A: For a firm in perfect competition, the supply curve is given by Price = Marginal Cost  So we plot…

Q: 3. Which of the following is considered an implicit cost? O A. Use of your labor services in manning…

A: In economics, any activity performed by am individual that doe snot provide anything in return or…

Q: . Apple uses labour and machines to produce iPhones according to the production f y = L&M, where L…

A: We have the following two equations:y = L1/4M1/4 -----------> eq(1)and L =4M ------------->…

Q: Solve for the missing entries in the above table. Enter whole dollar values for Total and Marginal…

A: Average fixed cost refers to the fixed cost per unit of output produced by a firm.Average variable…

Q: When fixed costs are ignored because they are irrelevant to a business's production decision, they…

A: The question is asking us to identify the term used to describe fixed costs that are ignored because…

Q: In continuation of that question  .d. Write down the formula and draw the graph of the average cost…

A: In this case, long-run production function for a competitive firm is given here and production…

Q: pdf 1 / 3 102% | Output Total Cost What are variable costs of producing 5 units? а. 0. $10 $20 b.…

A: Fixed cost is the total cost at output = 0 so it is $ 10. Fixed cost is independent of output and it…

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.