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: Complete the table below by calculating the variable costs for a firm.  The variable costs of the…

A: Variable costs are the costs incurred by the firm when additional output is produced. Thus the…

Q: You are planning to start a business. When calculating the costs. You have considered the costs of…

A: Opportunity cost refers to the best alternative foregone when choosing the other alternative.

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: 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: Solve the attachment.

A: The firms incur costs as per their production processes and other requirements to maintain and make…

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: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: Total Cost: The term total cost refers to the sum of all the costs that are used in the production…

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: Why does the difference between AVC and ATC get smaller as Q increases? b)  Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

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: Adam operates a factory that produces beach towels. His current level of output equals 1000 towels…

A: Average total cost is referred to as the sum total of all production costs divided by the total…

Q: 3- Given the total-cost function C(Q) = Q³ – 5Q² + 12Q + 75, Write out the marginal cost function.…

A: Marginal cost indicates the extra cost of producing one additional unit of output. The function for…

Q: Ontario is removing vehicle license renewal fees (article below). How does this affect the cost of…

A: Understanding the impact of eliminating licence renewal fees on automobile ownership costs is the…

Q: Determine the cost change factor in the following cases and identify the types of costs in them. The…

A: Cost oa production is the monetary value incurred in the process of production on inputs . There are…

Q: 5) If AVC = 20 & ATC = 25, then what is AFC? %3D %3D 6) If a firm produces 100 uunits of output and…

A: Fixed cost is independent of output produced.

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: As a production process requires labor L and capital K, q = F (L, K). The wage for a labor is $500,…

A: The optimal level of labor and capital is given by the point where the marginal rate of technical…

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: Copy the table below into your answer booklet and fill in the missing figures: output total cost…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

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: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: Let us assume you are a consultant of a firm. You realize that due to costs structures changes, the…

A: It can be defined as a type of cost that varies with the change in the output or production, When…

Q: 6)ABC company is using labor and capital to build widgets The last employee produced 20 more widgets…

A: 6. The marginal product of labour = 20     The price of labour = $10     The marginal product of…

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: Graphically show the relationship between the Avg. Variable Cost, Avg. Total Cost, and Marginal Cost…

A: Below is the formula: AVC = TVCQATC = TCQMC = TCn - TCn-1

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: Problem 06-04 For the pizza seller whose marginal, average variable, and average total cost curves…

A: Average variable cost is the variable cost divided by the quantity.AVC is U shaped curve.Average…

Q: Please see the attached two pictures, one for the graph, and the other for the questions.

A: In the third part of this question, which was uploaded in the previous link, there is a correction.…

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: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Given Information: Units produced Costs 0 $600 200 $1200 400 $1600 600 $1800 The fixed…

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: Introduction to Calculus in Economics: Calculus is a powerful tool used in economics. One of the…

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

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: B. Complete the table below using the given data. Average Variable Cost (RM) Total Average Cost (RM)…

A: Total fixed cost refers to the cost of production that does not change despite the level of output…

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: Question 4 Copy the table below into your answer booklet and fill in the missing figures: Output…

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

Q: Q2. For Cairo Dream House, a company that manufactures doors, the combined cost for labor and…

A: Profit is the financial gain or benefit that a business or individual receives after deducting all…

Q: 8. A manager is trying to decide whether to purchase a certain part or to have it produced…

A: A production cost known as a variable cost can go up or down in response to shifts in a company's…

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…