Never Flat Soda sells cans of soda for $1.50. They sell one more can of soda and make anadditional $1.50. The $1.50 isThe average cost for Never Cancelled Air to fly a 200-seat plane between New York City andLos Angeles is $60,000. The $60,000 isJonathan is the chef and owner at Jonathan's, whose best-selling specialty is gazpacho soup.Yesterday, he made $870 selling 29 gazpacho soup dishes at $30 each. Today, he made $1,410,selling 47 dishes of gazpacho soup, more than he made yesterday. The $1,410 isChipset, Inc. produces computer chips. Their cost to produce each additional unit decreasesfrom $6.75 to $3.25 because their silicone supplier now gives them a bulk discount. The$3.25 isZoe and her family are starting a business selling customized yoyos. To start the business, theymust pay $5,000 in up-front costs to lease space and buy equipment. The $5,000 isAmber owns a video game company. The company releases a new game called "AmphibianCorrection." It is a hit, and it only cost $5 per copy to produce each copy. The $5 is

Answered: Never Flat Soda sells cans of soda for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

A young Thomas Edison makes 20 light bulbs a week in his dorm room. The parts for each light bulb cost $2.25. He sells each light bulb for $5.25. General Electric offers Thomas an executive job that pays $55.00 a week. Thomas’s weekly economic profit from making light bulbs is equal to: Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. $
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (−). When the price is $1.50 per slice, the profit-maximizing level of output is slices per day. Instructions: Enter your response rounded to the nearest penny (two decimal places). At the profit-maximizing level of output, the producer's profit is: $ per day.
4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) 120 1 210 2 270 3 315 4 380 5 475 630
Q3
Imagine that you own one of several popular restaurants in your area. Due to the Covid Pandemic of 2020, all restaurants were forced to close down for two months. You are now allowed to reopen your restaurant to the public. During this time, labor costs were reduced however, overhead such as rent, electricity, etc. was still a large percentage of your total costs. You are facing a dilemma; you are short on funds. What options should you consider? For example, should you raise menu prices to make up for the lost revenue? Should you lower menu prices to attract more customers? Is your customer volume elastic? If you raise prices and the customer volume falls will the increase in prices compensate for the loss of volume? If it does not, is there some way you can make up the revenue shortfall? If you lower menu prices and revenue falls is there some way you can increase your business revenue? Explain your reasoning in terms of demand and elasticity.
A bookstore is selling books for $9.99 each or three for $25. If Evi buys 2 books, what is the marginal cost of the 2nd book? OA. $25.00 OB. $9.99 OC. $5.02 OD. $8.33 OE. $19.98 If Evi buys 3 books, what is the marginal cost of the 3rd book? OA. $25.00 OB. $8.33 OC. $9.99 OD. $19.98 OE. $5.02
Suppose that Maria is starting a food ordering and delivery company. Customers order meals online. Employees prepare the meals and deliver them to customers. Maintenance of the online platform for ordering meals costs the company $5/day. The company also rents spave where orders are prepared. Rent costs $50/day. To make the deliveries, the business also rents two delivery cars the cost $10/day. The costs of ingredients for preparing different numbers of meals are probided in the table below. Maria also has to hire between 0-10 workers to buy ingredients, prepare meals, and deliver the orders. She pays them $120/day. The first two columns of the table below shows how many meals different number of workers can prepare and deliver. Fill out the table
Poornima's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Poornima's very tiny kitchen has barely enough room for the three ovens in which her workers bake the pizzas. Poornima signed a lease obligating her to pay the rent for the three ovens for the next year. Because of this, and because Poornima's kitchen cannot fit more than three ovens, Poornima cannot change the number of ovens she uses in her production of pizzas in the short run. However, Poornima's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Poornima lets them know how many workers she needs for each day of the week. In the short run, these workers are inputs, and the ovens are inputs. Poornima's daily production schedule is presented in the following table. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Labor Output Marginal Product of Labor…
Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.
A movie theater shows films for a community of 10000 people. Right now, the price per ticket is $17.50. In the past, when they increased or decreased the price per ticket, they discovered that for every dollar (or fraction) that the price was increased or decreased, the attendance decreased or increased proportionally by 200 people. The theater owner pays the Film Distribution Company $10 (incremental cost) in royalties per person whoviews the film. Find a. The willingness to pay distribution of the movie goers. b. The average price they would be willing to pay. c. The price per ticket that maximizes revenue. d. Should the theater owner increase or decrease the price per ticket if she wants to maximize contribution? e. Find the consumer surplus if the tickets are priced at the price that maximizes contribution. Please complete in excel showing formulas on how it was completed
Economists define profit a bit differently than in accounting. In addition to explicit costs, we also subtract out implicit costs—what you could have earned from the next best alternative. For example, suppose that you are making $60,000 as an accountant. You decide to quit your job and open up your own accounting business. You end up making a profit of $50,000. How have you done? Accountants would call this a profit of $50,000 while economists would say that you just lost $10,000 (relative to what you were making before). So, economists define profits as being equal to total revenues minus total costs, where costs include the opportunity cost. Suppose that a firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital, and $200,000 on materials. Calculate the firm’s accounting profit? If the firm’s factory sits on land owned by the firm that it could rent for $30,000 per year, calculate economic profits.
Consider two pizza places in NYC, Bella Napoli and SuperPizza. The current pandemic and the City's policy response halved the local demand for pizza and raised cost of production. Currently, the daily total cost at Bella Napoli is TC =q² + 12q + 100 and the recurring FC is entirely sunk in the short run. At SuperPizza, the daily total cost is TC = q? + 4q + 100 and $64 of the recurring FC is sunk in the short run. On weekends, the price of pizza is $20 per pie. On weekdays, it's $15. Should Bella Napoli and/or SuperPizza stay open on weekdays or shuold they stay open on weekends only?

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