Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain why:  (Chapter 2)    You are deciding which car to buy. Car A is $24,000 and car B is $32,000. The difference in price is $8,000. What kind of cost does this represent?   Answer:    Your company invested $300,000 into a study to determine the feasibility of introducing a new product line into the business. The study recommended 2 mutually exclusive feasible alternatives. What kind of cost does the $300K represent?   Answer:    You have 2 alternatives for a $10,000 investment. Investment A provides a $500 return and investment B provides a $700 return. If you choose Alternative B, what does the $500 return from Alternative A represent?   Answer:

Q: Refer to the Long Run Average Total Cost curve below to answer the following questions:

A: Economies of scale occurs when LRAC decreases as output increases. In the given curve, LRAC…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: Kevin quits his computer programming job, where he was earning a salary of $60,000 per year, to…

A: Given the give up salary = $60000 Rent = $24000 Salary paid to himself = $40000 Rent = 0 Other…

Q: An entrepreneur invests $10,000 of her personal savings in her new business venture. Furthermore,…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

Q: Consider the data in the table which applies to the provision of psychological testing services.…

A: Variable Cost is the cost which depends on the amount of output. It changes with the change in the…

Q: Fill in the missing values for total fixed cost, total variable cost, and total cost in the table…

A: Here, the given table provides information about total fixed cost, total variable cost and total…

Q: This is a graph of our firm’s costs. Label the lines on the graph using the following labels:…

A: Cost of production is those costs which are incurred by the manufacturer for manufacturing the…

Q: 9 35 30 25 20 15 10 5 O O 2 3 Quantity (Vats of juice) 10 5 6 Marginal Cost Average Variable Cost…

A: The Average Cost is the per unit cost of production acquired by separating the total cost (TC) by…

Q: Refer to the graph shown above. Based on the information illustrated in the graph, which of the…

A: Answer - Need to find- Correct option - Given in the question-

Q: In the figure above, which of the following statements makes sense? Group of answer choices A)…

A: For the production of the goods and services , firm incurred some cost . There is mainly 2 type of…

Q: Which of the following is an example of an implicit cost? Group of answer choices A)Federal taxes…

A: Implicit cost is such a cost that shows factor cost owned by entrepreneur himself and also known as…

Q: Assume the average cost when producing 4 units is 10, the average cost of producing 6 units is 8,…

A: The table shows output and AC:

Q: When ONLY total costs (TC) are known, such as shown in Table 1 below, explain how to calculate each…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: Which of the following is a correct statement about the relationship between average cost (AC) and…

A: The relationship between MC and AC can be stated as under: (i) When AC falls with increase in…

Q: Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost…

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

Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily…

A: Total cost is the cost that includes total variable cost and total fixed cost of the production.

Q: A firm's short-run cost function is C(a) = 240q – 69° + 0.6q° + 600. Determine fixed cost, F;…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Consider three firms that produce two products with quantities denoted 91 and 92. The three distinct…

A: Here we have to calculate the Total Cost (TC), Average Cost (AC), Marginal Cost (MC), and…

Q: Ebba Kantzen says the following: "I am currently producing 10,000 pizzas per month at a total cost…

A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: Suppose your current job pays you $300,000 a year.  However, you are considering starting your own…

A: Given, Total revenue=$7,500,000  Cost of material=$2,750,000  Employees salary=$1,500,000…

Q: You produce widgets. Currently you produce four widgets at a total cost of $40. What is your average…

A: The average cost is the total cost divided by the quantity of output whereas the marginal cost is…

Q: Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.…

A: Based on the provided information and the cost functions, I have filled out the missing data in the…

Q: Continue analyzing the production for a firm.  Use the Total Variable Costs calculated in the…

A: Production is the process of creating goods or services. It involves the use of inputs, such as raw…

Q: Let F be the fixed cost of production, let VC be the variable cost of production, C be the total…

A: TC is consisting of fixed cost and variable cost. Fixed costs are those costs which a company has to…

Q: The table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If…

A: Marginal cost is the cost of producing one more unit of a good. It can be calculated by taking the…

Q: The table below represents the costs of producing sneakers. Quantity 10 17 24 31 38 4 Fixed Cost…

A: Fixed cost: Fixed costs are the expenses incurred by the firm that do not change if the level of…

Q: Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost…

A: Quantity Total Cost Marginal Cost Fixed Cost Variable cost AVC ATC 0 120 --- 120 0 0 0 1 210 90…

Q: Which of the following statements is a reflection of the fact that the average fixed cost falls as…

A: Total cost (TC) is the sum of fixed cost (FC) and variable cost (VC). i.e., TC = FC + VC…

Q: Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows…

A: Total cost (TC) at zero level of out is the total fixed at cost at each level of output. Thus, fixed…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: The average total cost(ATC) can be defined as the cost per unit of output of a commodity, it is…

Q: The Cobb-Douglas production function for a particular product is N(x,y) = 40x0.6.0.4, where x is the…

A: Production function:N (x,y) = 40x0.6y0.4 Wage per labor (w) = $40Rent per capital (r) = $120Budget…

Q: Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start…

A: Cost(C) refers to the total monetary value of resources used to produce a good or service.Explicit…

Q: This chapter discusses many types of costs: explicit costs, implicit costs, total cost, average…

A: The questions given are based on different types of cost and are quite self explanatory.

Q: Total Cost Marginal Cost (Dollars) Fixed Cost Variable Cost Average Variable Cost Average Total Cost…

A: The total production process of a firm/company is an amalgamation of various costs, the optimum…

Q: C = 0.25q3 - 4q2 + 75q + F. The equation for average cost (AC) is: AC = (Properly format your…

A: A cost function is a formula used to predict the cost that will be experienced at a certain activity…

Q: Craig and Javad run a paper company. Each week they need to produce 1,000 reams of paper to ship to…

A: Total cost refers to the total expenditure a business incurs to produce a specific quantity of goods…

Q: Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: 3-5 Starbucks Starbucks is hoping to make use of its excess restaurant capacity in the evenings by…

A: The Hidden Cost is considered the cost which remains unnoticed by the manufacturer. These hidden…

Q: Calculate total costs at 4 units of output.  Do not put a dollar sign in your answer.  (The 6…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: Refer to the table below. Note that the first column shows variable costs. Quantity Cost 0 1 2 3 5 6…

A: The firm will produce where the marginal revenue is equal to marginal cost to maximize its profit.…

Q: Which of the following is always true?A) When marginal costs are less than average total costs,…

A: Below are the cost curves: (Sorry it’s a free hand diagram so it is not very neat)