K-Electric's costs of production as follows: Quantity Total Variable Costs Rs. 0 Total Fixed Costs Rs.100 Rs.100 Rs. 100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 Rs. 3 Rs. 100 Rs.100 Rs. 100 Rs.100 4 6. a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the fim's profits / losses? Was this a wise decision? Explain.

K-Electric's costs of production as follows: Quantity Total Variable Costs Rs. 0 Total Fixed Costs Rs.100 Rs.100 Rs. 100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 Rs. 3 Rs. 100 Rs.100 Rs. 100 Rs.100 4 6. a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the fim's profits / losses? Was this a wise decision? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The diagram displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell phones: a) What are the daily total fixed costs of producing LCD screens?b) What are the total variable costs of producing 100 LCD screens per day?c) What are the total costs of producing 100 LCD screens per day?d) What is the marginal cost of producing 100 LCD screens instead of 99? (Hint: To answer this question, you must first determine the total costs-or, alternatively, the total variable costs of producing 99 LCD screens.)
Consumer and Producer Theory A small marketing agency has the following cost structure. Monthly rent on office space = *50,000 Monthly wages of each copywriter = 20,000 Here are the units of output produced per month according to the number of copywriters hired. No. of copywriters Units produced per month 4 5 6 1.0 1 7 2 4 01 6 7 8 9 10 30 55 75 90 100 108 Till what number of copywriters was the firm experiencing economies of scale? 114 118 116 117
2. A company's total cost function as TC = 4,900 + 12Q+4Q Derive the following equations and compute their respective values when Q = 35 a. Average Total Cost (ATC): b. Average Variable Cost (AVC): C. Average Fixed Cost (AFC): d. Marginal Cost (MC):
The cost information in the following table shows that as production increases Quantity produced/day Total cost Variable cost 0 $50 0 1 $75 $50 2 $110 $75 3 $155 $100 4 $210 $150 5 $270 $175 6 $345 $250 A.) variable cost increases at a uniform rate. b.) variable cost increases and then eventually falls c.) average total cost always falls d.) marginal cost eventually increases
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate