Answered: It costs $50,000 to start a production…

It costs $50,000 to start a production process. Variable cost is $25 per unit and price is $45 per unit. What is the break-even volume? 2000 units 1000 units 1111 units O 2500 units

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

See similar textbooks

Related questions

Q: Question 6 Among all the for-hire transportation modes, which one contributes the least to GDP? O…

A: To make economic transactions on a widespread area, there is a need to transport goods from…

Q: y = A(1-ga) ere ga is the fraction of all workers that produce technologies. Further, suppose the…

A: The production function of a venture is a relationship between inputs used and yield made by an…

Q: b. What is the effect on the equilibrium price and quantity traded in a market of a change in tastes…

Q: ($) ($) ($) ($) ($) $60 $6.50 $108 $6.50 $6.50 $144 $6.50 $168 $6.50 $180 $6.50 $180 $6.50 $168…

A: Here, P = price R = revenue TR = Total revenue MR = marginal revenue MC = marginal cost TC =…

Q: discuss two methods that the government may use to intervene in the market to eliminate the market…

A: The market that does not tend to succeed in incorporating all information that is available into a…

Q: A wastewater treatment facility is planning to purchase a new sludge dryer equipment to replace its…

A: Rate of return for a project or the internal rate of return for a project, denoted as IRR, is…

Q: AS AD, AD Y, Y=Y¡ Recessionary gap Refer to the diagram shown below. Suppose AS curve is horizontal…

A: Aggregate demand is a sum of consumption spending, investment spending, government purchases and net…

Q: Consider the U.S. passenger airline industry through the lens of the Five Forces model. Assume that…

A: Answer: The presence of car and train travel shows that substitutes for air travel are available.…

Q: can you explan step by step how (100-q2)q2-10q2 turned into 100-2q2-10=100?

A: The profit function has been differentiated here.

Q: If the economy above was at point D, a good thing to do would be to increase government spending.…

A: Increasing government spending or reducing government spending to energize a sluggish economy,…

Q: Are the Aboriginal people important in China and Australia government operations?

A: The link to family, community, and country is important to Aboriginal culture.The concept of "being…

Q: (Q#5) The economy has fallen into a "double dip" recession and national production (GDP) in real…

A: As per the guidelines answer is provided to the first question i.e. Q5. Q5. "Recession means a…

Q: Tax incidence. Given: Demand (D): P = 100 – 1.5 Q Q* = 40 P*=40 Supply (S): P = 20 + 0.5 Q a.…

A: Since you have posted a question with multiple sub-parts, we will solve first three questions for…

Q: Match the definition to each term listed below. Number Definition A table that shows the payoffs…

A: We use all the basic definitions of game theory to answer these questions.

Q: MICROECONOMICS The Pandemic hurt business at restaurants. A Faneuil Hall landmark closed:…

A: TC(total cost) is the sum of TVC(total variable cost) and TFC(total variable cost). AC(average cost)…

Q: Which of the following statements is CORRECT? Question 17 options: Short-run decisions are not…

A: There are various factors that affect the production. Some factors are variable and some are fixed.

Q: 2a) Self-regulation, regulation by the government and regulation by a governmental agency are three…

A: Financial regulation is a kind of regulation or supervision that enforces particular rules, limits,…

Q: Assume that the economy is facing a GDP gap. 1. Write a report explaining why that might have…

A: There are two types of GDP gaps i.e. rrecessionary output gap and the inflationary output gap. In…

Q: Requirements 1. Describe the production costs in the equation formY = f+ xX. 2. Assume Alta intends…

A: Given information Cost function Y=f+Vx Given data analyze cost for 350 units.

Q: Show that expectation damages are efficient with respect to breach, but not efficient with respect…

A: Damages recovered by the non-breaching party as a result of a contract breach are known as…

Q: I. Disequilibrium occurs when planned aggregate expenditure is greater than aggr II. Disequilibrium…

A: Disequilibrium: Disequilibrium arises when the market fails to clear all its products. That means…

Q: monopolists, but not competitive firms

Q: What will happened to Equilibrium Price and quantity if a) Government imposes, import tax to the…

A: Demand and supply In perfect market competition the optimum quantity is produced where the demand…

Q: Calculate the quarter-over-quarter percentage change in GDP for the last four quarters:

A: Quarter over quarter can be calculated by using the following formula, (GDPQ-GDPQ-1)GDPQ-1×100 GDPQ…

Q: Real GDP is $16 trillion and aggregate planned expenditure is $17 trillion. As a result, unplanned…

A: Real GDP is the value of final goods and services produced in the economy within a given period of…

Q: If you graduate college and decide to take your time looking for a job even though you can find one…

A: There are three types of unemployment: frictional unemployment, structural unemployment and cyclical…

Q: Section A Answer the following question. a) Assume that a country is suffering from rising inflation…

A: Answer a. The government can impact the level of economic activity by adopting proper monetary…

Q: According to Flaaen and Pierce (2020) the main channels through which the US import tariffs and…

A: Tariffs Tariffs refer to tax which is imposed by the domestic country at the time of import of goods…

Q: The Federal Reserve can target both the money supply and interest rates simultaneously. O True O…

Q: You are faced with making a decision on a large capital investment proposal. The capital investment…

A: Computation of net cash flow of the project Given in the question: Capital Investment = $640,000…

Q: Given the government pays someone to build a bridge, according to John Maynard Keynes, how would…

A: John Maynard Keynes was a great economist and was in the view to encourage the aggregate demand in…

Q: how can immigration affect economic growth in the home country, both in the short and long run.…

A: Immigration is described as individuals moving from their home nation or area to reside in a country…

Q: O both the noncompetitive firm and the purely competitive firm.

Q: what is profit margin?

A: Profit margin is a measure of profitability. Profit margin is the diffrrence between the cost of…

Q: Table 18-7 Number of Marginal Product Value of Marginal Marginal Workers Output of Labor Product of…

A: Marginal product of labor refers to change in total product with change in labour input.

Q: The empirical evidence covered in the lecture supports the view that the US China import tariff…

A: Import tariff In this graph the equilibrium of demand and supply is achieved when the local firms…

Q: The following graph represents our economy Note MPCB CRAS SRAS PeLeve 14 100 14 Re OP n S 1. What…

Q: Which of the following would cause the money supply curve to shift to the left? Select one: a. A…

A: Federal Reserve is the organization that is responsible for managing money supply in the economy

Q: Assume that the economy experiences very high increasing energy prices. 1. Explain about what…

A: Price: It refers to the rates at which goods and services are available in the economy. The more the…

Q: Assume a government starts with zero debt. This government then runs an annual deficit for 28 years…

A: The financial liabilities of the government sector are referred to as gross government debt (also…

Q: As the manager of a monopoly, you face potential government regulation. Your inverse demand is P =…

A: demand P = 25 − 2Q, and costs are C(Q) = 5Q.

Q: Essay: How important voting is for youth?

A: It is important for the youth to vote because for us we can see around the world that there is so…

Q: Which one of the following sets of circumstances could the existence of economies of scale cause in…

A: Economies of scale is an advantage enjoyed by the firm by increasing production and decreasing cost.…

Q: EP Qp and Qs are quantity demanded and supplied of perfume, res t is the equilibrium price and…

A: Whenever the worth of elasticity is more prominent than 1.0, it proposes that the demand for a long…

Q: Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $5 trillion…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: 3. The 4 countries peg their currency to the U.S. $. Which of the 4 countries is best positioned to…

A: Reserves as %age of GDP = reserves / GDp * 100 FDI as %age of GDP = FDI / GDP * 100

Q: 6 Define and explain the following concepts. Add equations and graphs where necessary: -Uncovered…

A: The international parity conditions are fundamental financial theories that govern the determination…

Q: A reason for placing emphasis on capital accumulation in developing countries is the high Multiple…

A: Capital accumulation refers to an increase in assets from investments or profits and is one of the…

Q: A local firm sells pairs of pants at P1,514 each. The cost of manufacturing and marketing them is…

A: Given information, Selling price per unit = P1,514 Variable cost per unit = P509 Fixed costs =…

Question

It costs $50,000 to start a production process. Variable cost is $25 per unit and
price is $45 per unit. What is the break-even volume?
2000 units
1000 units
1111 units
2500 units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

these are the drop down options Washes per hour dollars
Needed in 20 min
average cost of producing 220 units
What is the equipment"s the initial cost?
show calc
H.W 7/ For the following data: Fixed cost = 100,000 ID Variable cost per unit = 300 ID Selling price per unit=500 ID n = 500 Calculate BEP by using chart method
MC $35 ATC AVC 15 10 500 Units of output Cost per unit ($)
Most engineering students own a computer. What costs have you incurred at each stage of your computer’s life cycle? Estimate the total cost of ownership. Estimate the benefits of ownership. Has it been worth it
Fixed cost is $2600, variable cost per unit is $100 and selling price is $60. Find Break Even Point and Total Revenue.
Can you explain why this isn’t 60? I thought it was base times height times 1/2
\table[[\table[[Output], [per], [Month]], Price, \table[[Total], [Revenue]], Total Cost,Total Profit, \table [[Marginal], [ Revenue** Output per Month Price 0 $1,000 100 Total Revenue $0 1,000 100,000 Total Cost Total Profit Marginal Revenue* Average Revenue* Profit per Cost Total Cost Unit (Price - ATC) $60,000 -$60,000 90,000 10,000 $1,000 $300 $900 $100 200 1,000 200,000 130,000 70,000 1,000 400 650 350 300 1,000 300,000 180,000 120,000 1,000 500 600 400 400 1,000 400,000 240,000 160,000 1,000 600 600 400 500 1,000 500,000 320,000 180,000 1,000 800 640 360 600 1,000 600,000 420,000 180,000 1,000 1,000 700 300 700 1,000 700,000 546,000 154,000 1,000 1,260 780 220 800 1,000 800,000 720,000 80,000 1,000 1,740 900 100 900 1,000 900,000 919,800 -19,800 1,000 1,998 1,022 -22 "Note that output levels are calibrated in hundreds in this example; that's why we have divided the change in total costs and revenues from one output level to another by 100 to calculate marginal revenue and marginal…
Billco had a total cost of $10,000 when it sold 200 units. It had a total cost of $14,000 when it sold 250 units. What was Billco's average total cost when it sold 250 units?