OutputTFCTVC1234542020TCTCAFCAVCATCMC511???5Refer to the following table. What is the average variable cost of producing three units of the good?$2$12$8$420$4

Determine then TVC at 2nd output TVC at 2nd output = TC - TFC = 11 - 4 = 7Based on the given MC for…

Answered: Output TFC TVC 1 2 3 4 5 4 20 20 TC TC…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a particular firm operating in this PRICE (Dollars per wind chime) 40 36 32 28 24 20 16 12 8 4 0 0 MC ATC 2 4 8 10 12 14 16 18 20 QUANTITY (Thousands of wind chimes per day) AVC 6 market: a) In short run, at a market price of $26 per wind chime, how much will firm choose to produce per day? How do you know? loss in si LIGHT OF LOSS IN SUCARAMIH OF HIS STAPAL. graph. c) What is this firm's shutdown price, that is the price below which it is optimal for the firm to shut down in short run? d) In the long run, all firms can enter and exit the market, and all entrants have the same costs as above. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain your answers. e) Graph the long-run supply curve in equilibrium for this market,…
5. If you can sell 10 computers for $1400 each or 11 computers for $1300 each, and the marginal cost is $1000, what should you do and what is the profit?
d. The last column of Table 2.2 shows the marginal cost of Good U, which we also assume that the fixed cost of production is RM2000. Marginal cost of Good U (RM) Good U (units) 100 10 200 5 300 3 400 2 500 3.5 600 4.5 700 8 800 11 900 13 1000 18 Table 2.2 i. Compute the average cost based on Table 2.2. ii. We cannot use the cost information in the last column of Table 2.2 to determine whether the production of Good U shows economies or diseconomies of scale. TRUE / FALSE iii. Until which output level that that the production starts to exhibit diseconomies of scale? Why?
Principles of Microeconomics Name: Homework #3 Prof. R. Harris DUE: Wednesday, April 17, 2019 at the beginning of class - NO EXCEPTIONS. Please remember to show all work and please be neat. Please staple this if you print it on your own. 1. Consider the following table of numbers, which represents demand and cost conditions for a com firm. petitive TR 600 0 1 2 $o $400 600 $400 $240 600 $430 $670 $960 $1,350 $1,840 $2,440 $3,120 $3,910 $4,800 600 600 600 600 600 600 5 6 7 600 600 9 10 (a) Fill in the missing values (b) Use the information in the chart to determine what level of output the firm should produce. Explain your reasoning.
Suppose that Shen is a diligent hard - working first- year college student. One Friday, he decides to start the day by working through 300 practice problems to study for the econometrics class. Using a table to track his progress throughout the day, he notices that as the hours pass, takes him longer to solve the problems.Use the table to answer the following questions.
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Use the figure below to answer the following questions. Average cost (dollars per sweater) 12 H Select one: OA. Plant A OB. Plant B O C. Plant C O D. Plant D O E. none of the above 10 8 6 4 2 0 5 10 ATCA ATCB ATCC ATCD 15 20 25 30 Output (sweaters per day) Figure 11.4.2 Refer to Figure 11.4.2, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?
Safari File Edit View History Bookmarks Develop Window Help 20% O Sat 12:19 PM A bbhosted.cuny.edu F Access Denied - Jordan Retro 1 High OG . WAITING D Search Results B6 Take Test: Short Exam #2. C Solved: If The MPP Of An. * Question Completion Status: Question 19 24 points Save Answer A small local firm produces string lights for Halloween and has the following revenues and costs in a perfectly competitive market: Output in units per hour (Q) Variable Total Cost (TC) Marginal Cost (MC) Total Profit, Price of $15 Market Price of Total Fixed Cost (FC) Revenue Cost (VC) $15 $15 1 $15 15 9. 14 9. $15 30 5 20 25 3 $15 45 33 13 4 $15 5 48 53 15 5 $15 75 64 69 16 a. If the market price is $15, what is the revenue at output equal to 4 units? b. What is the total cost at output equal to 3 units? c. What is the marginal cost at output equal to 2 units? d. If the market price is $15, how much output per hour should the firm produce? What is the profit at that level of output? étv W 31
The following tables show a small firm’s long-run average cost of manufacturing a good at two differentplants: able1: Plant 1Quantity Total cost Average cost Marginal cost 1 33 2 89 3 147 4 207 5 270 6 338 Table2: Plant 2 Quantity Total cost Marginal cost Average cost 1 32 2 64 3 102 4 142 5 187 6 239 7 297 8 357 9 419a. Complete the third and fourth columns of each table.b. Suppose the price of the good is $60. How many units should the firm produce in each plant tomaximize profit?c. Compute and compare the profits the firm can make if it produces the optimal quantity at eachplant.
Mm
5. Discuss why the marginal cost curve (MC) has the following shape: 27 22.40 Costs 16 14 an 2 3 Quantity of outpat (s) MC ATC AVC The family cost eveven AFC
14. Suppose a market is currently producing in an allocatively efficient manner. Using the concepts of marginal utility, marginal cost, and price, explain exactly what that market must be doing and why that makes the outcome allocatively efficient or not.

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Output TFC TVC 1 2 3 4 5 4 20 20 TC TC AFC AVC ATC MC 5 11 ??? 5 Refer to the following table. What is the average variable cost of producing three units of the good? $2 $12 $8 $420 $4