Torushka is a profit maximizing firm producing wooden dolls, which it can produce and sell in its home country, Russia, and abroad in France. Theaverage cost (AC) curve on the following graph represents Igrushka's cost of producing wooden dolls within one factory, whether in Russia or inFrance.COST (Dollars per wooden doll)1090D1020 30 40 50 60 7080QUANTITY (Thousands of wooden dolls)AC90 100?← Suppose that at the current market price of wooden dolls, the demand for Igrushka's product is 20,000 wooden dolls per year in Russia and 10,000wooden dolls per year in France. (Hint: Select each point on the previous graph to see its coordinates.)Based on Igrushka's average cost curve, within one factory it can produce 10,000 wooden dolls atwooden dolls atper wooden doll, and produce the total of 30,000 wooden dolls at SComplete the following table by indicating Igrushka's total production cost for each scenario.ScenarioProduce 20,000 wooden dolls in Russia and 10,000 wooden dolls in France.Produce 30,000 wooden dolls at the same factory.Total Production Cost(Dollars)per wooden doll, produce 20,000per wooden doll.Now suppose that if Igrushka produces wooden dolls in one country and sells them in the other, it incurs an additional shipping cost equal to $3.00 pertransported wooden doll.If Igrushka produces 30,000 wooden dolls in Russia and transports 10,000 of them to France, its total cost of production and shipping isIf Igrushka produces 30,000 wooden dolls in France and transports 20,000 of them to Russia, its total cost of production and shipping isBased on Igrushka's production and shipping costs determined in the previous questions, which of the following is Igrushka's best production strategy?O Produce 30,000 wooden dolls in France and ship 20,000 wooden dolls to Russia.duce 20,000 wooden dolls in Russia and 10,000 wooden dolls in France.O Produce 30,000 wooden dolls in Russia and ship 10,000 wooden dolls to France.O Produce 30,000 wooden dolls in either Russia or France.Save & Continue4

The best production strategy is a strategy that minimizes the overall average cost of production.…

lorushka is a profit maximizing firm producing wooden dolls, which it can produce and sell in its home country, Russia, and abroad in France. The average cost (AC) curve on the following graph represents Igrushka's cost of producing wooden dolls within one factory, whether in Russia or in France. COST (Dollars per wooden doll) D D 1 1 I I II 1 II 1 10 20 30 40 50 60 70 80 QUANTITY (Thousands of wooden dolls) AC 90 100 ?

lorushka is a profit maximizing firm producing wooden dolls, which it can produce and sell in its home country, Russia, and abroad in France. The average cost (AC) curve on the following graph represents Igrushka's cost of producing wooden dolls within one factory, whether in Russia or in France. COST (Dollars per wooden doll) D D 1 1 I I II 1 II 1 10 20 30 40 50 60 70 80 QUANTITY (Thousands of wooden dolls) AC 90 100 ?

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

Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company’s total cost of production at various production quantities. On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $210, so you should start your ATC curve by placing a green point at (1, 210). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $90, so you should start your MC curve by placing an orange square at (0.5, 90).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
9:20 Today Вack Edit 9:18 PM 9. You are given the following cost data: TFC TVC 12 1 12 5 12 9. 3 12 14 4 12 20 12 28 12 38 If the price of output is $7, how many units of output will this firm produce? What is the total revenue? What is the total cost? Will the firm operate or shut down in the short run? in the long run? Briefly explain your answers.
In tourist towns such as Myrtle Beach, some businesses stay open year round while others close. How do fixed and variable costs affect their decision to close or stay open? (Review "The Shutdown Point" chapter 8). Write your response below. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph V Arial P 동≡ EE X² X₂ 旺图 ‹› † {} 23 (+) V 10pt »¶¶ ✓ !!! F V A V "Ω Θ Ix A
Q3
Question 31 2.5 pts The following figure shows the marginal cost curve, average total cost curve, average variable cost curve, and marginal revenue curve for a firm for different levels of output. Price MC ATC AVC F G R MR W 0 A B Quantity At the output level OC, average fixed cost is equal to ○ MC GM GZ ZM 000 о
please show me if i graphed correctly for the profit graph, please help me graph the marginal revenue and marginal cost and also please fill in the blanks
"In the short run, even when output is zero, the firm still has some variable costs it must pay." Is the statement correct or incorrect? Briefly explain your answer.
The following table shows partial cost information of White T-shirt Manufacturing Company. The T-shirt market is a perfectly competitive market. thanks!
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…
Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 AFC Qutity Which best describes the firms short run capacity? MC = AFC MC = AVC AVC = ATC AVC = AFC MC = AC Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 10 AFC Qurtity Which price would best describe the firm is making an economic profit? 15 10 8 5 Using the following graph of the cost curves for a firm. Complete the statement below. yice AC AVC 15 10 5 AFC Qurtity Which price would best describe the break even point for this firm? O 15 12.5 10 16 Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 10 AFC Quantity Which price would best describe the shut down condition for this firm? 15 12.5 16 10 10 5 5
Nathan runs a rare book store. Last year, he earned $35,000 in revenue and had explicit costs of $8,000. Nathan could have made $35,000 driving a boat in a water ski show and received an additional $5,000 if he had used the company's inputs in a different way. Calculate Nathan's economic profit. $
The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market. Instructions: Use the nearest whole numbers on the graph when calculating numerical responses below. " A graph summarizes the demand and costs for a firm that operates in a perfectly competitive market.""The horizontal axis labeled quantity ranges from 0 to 11 in increments of 1. The vertical axis labeled dollar ranges from 0 to 48 in increments of 4. A horizontal line labeled D-superscript f = M R enters the quadrant through the point (0, 28). An upward-facing curve labeled M C begins at the point (0.5, 20) goes down to the right with decreasing steepness to a low point at (3.5, 8) then goes up to the right with increasing steepness to end at the point (8, 40). A second upward-facing curve labeled A V C begins at the point (0.5, 22) goes down to the right with decreasing steepness to a low point at (5, 12) then goes up to the right with increasing steepness to end at the…