Nicolas has purchased a streaming audio service for $8.00 per month. As he listens to more songs in a month, he spreads this fixed cost over a larger quan- tity, q. Derive an algebraic formula for his average fixed cost per song and draw it in a diagram. One of his friends says to Nicolas, "The more music you

Nicolas has purchased a streaming audio service for $8.00 per month. As he listens to more songs in a month, he spreads this fixed cost over a larger quan- tity, q. Derive an algebraic formula for his average fixed cost per song and draw it in a diagram. One of his friends says to Nicolas, "The more music you

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...

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Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total cost, and marginal cost for eachquantity.b. Graph all three curves. What is the relationship between the marginal-cost curveand the average-total-cost curve? Between the marginal-cost curve and the averagevariable-cost curve? Explain.
Refer to the to graph on the right. Which level of output in the graph below represents the minimum efficient scale? OA 1,000 books B. 20,000 books C. 40,000 books $22 00 D. 80,000 books 20.00 18.00 Which size bookstore is more likely to expenence diseconomies of scale? Long-nun Average cost O A. Abookstore selling 1.000 books per month B. A bookstore seling 20,000 books per month C. Abockstore selling 40,000 books per month 40,00.000 OD. A bookstore seling 80 000 books per month 1,000 20,000 Quantry of books sold per month
Homework (Ch 13) Douglas Fur is a small manufacturer of fake-fur boots in Houston. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost (Pairs) (Dollars) (Dollars) (Dollars) 0 78°F Sunny 1 2 3 4 5 6 60 155 220 255 300 350 450 2 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 $155, so you should start your ATC curve by placing a green point at (1, 155). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $95, so you should…
Consider this statement: “A firm should increaseoutput when it makes a profit.” Do you agree ordisagree? Explain.
The table below shows the cost of production for Coca-cola 200 ml. please answer the table graph the table with marginal cost, average variable cost, average fixed cost and average total cost explain the relationship of the graph of the arginal cost, average variable cost, average fixed cost and average total cost Output Variable Cost Fixed cost Total Cost Marginal Cost Average Variable Cost Average Fixed Cost Average Total Cost 0 0 9 1 694 9 2 833 9 3 1018 9 4 1157 9
What is the summary of the video "See the true cost of your cheap chicken"
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I want a way to solve this question (Explanation of the answer) Find the following costs from the table given below. Output Total Cost TFC TVC AC AVC AFC MC 0 500 1 800 2 1100 3 1200 4 1400 5 1500
Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 6400 a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?
S Costs 35 3:0 25 20 15 10 0 2 3 Quantity (Vats of juice) E Marginal Cost O Search Average Variable Cost Average Total Cost Which of the following statements are true according to the previous graph? Check all that apply. The marginal-cost curve is above the average-total-cost curve when output is greater than four and average total cost is rising. The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising. The marginal-cost curve lies below the average-variable-cost curve. C (((.
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Suppose your dad owns a voodworking shop where he makes handmade benches. The following graph shows the marginal cost (MC) and average variable cost (AVC) for your dad's business. 100 90 80 MC 70 60 AVC 50 40 30 20 10 10 20 30 40 50 60 70 80 90 100 OUTPUT (Benohes per month) For each of the prices in the following table, use the graph to determine the number of benches your dad would produce in order to maximize his profit. Also, for each of the prices, indicate whether the firm will produce or shut down (or be indifferent between the two) in the short run. Price Output (Dollars per bench) (Benchs per month) Produce or Shut Down? 32 36 42 55 66 76 COST (D olars per bench)