OutputTotal Cost0$4001$9002$1,3003$1,6004$2,0005$2,5006$3,100The above cost data are for a firm operating in the short run. Based on the table,which of the following is correct?Average variable cost of producing three units of output is $400.Average fixed cost of producing 4 units is $500.Diminishing marginal returns set in with the production of the third output.

Average variable cost (AVC) is calculated by dividing total variable cost by the quantity of output.…

Answered: Output Total Cost 0 $400 1 $900 2…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a firm producing cell phones is operating such that marginal costs are much lower than average costs. If the firm produces one more cell phone, average costs will rise. fall. remain constant. reach their maximum.
Fixed cost is Multiple Choice the cost of producing one more unit of capital, for example, machinery. any cost that does not change when the firm changes its output. average cost multiplied by the firm's output. usually zero in the short run.
Complete the following table of short-run fixed costs. (Enter your responses rounded to two decimal places.) Total Fixed Cost (TFC) $1,500 Output (9) 1 2 3 4 5 1,500 1,500 1,500 1,500 Average Fixed Costs (AFC) $
Problem 05-06 A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, average variable cost, and marginal cost at all relevant levels of output. Instruction: Enter your responses for Average Fixed Cost (AFC) and Average Variable Cost (AVC) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number, use a negative sign (-) where appropriate. Q AVC ATC MC 150 300 75 200 H50 175 225 30 325 25 400 FC VC TC AFC 0 $ 15,000 0 100 15000 200 15000 300 15000 400 15000 500 15000 600 15000
Show full answers and steps to part d) e) & f)
Full explanations would be appreciated! 25) In a short-run production process, the marginal cost is rising and the average variable cost is falling as output is increased. Thus, A) marginal cost is below average fixed cost. C) average fixed cost is constant. B) marginal cost is below average variable cost. D) marginal cost is above average variable cost. 26) A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. The marginal product of labor is 3, and the marginal product of capital is 5. The firm A) could reduce the cost of producing its current output level by employing more labor and less capital. B) could reduce the cost of producing its current output level by employing more capital and less labor. C) could increase its output at no extra cost by employing more capital and less labor. D) is producing its current output level at the minimum cost. E) Both B and D are true.
A firm’s long-run total cost curve is given by: C(q) = 40q − 10q2 + q3 . Over what range of output does this technology exhibit decreasing returns to scale? Group of answer choices q>8 q<5 None of the above are correct. q>10 q>5 Note: don't use chat bot
Tåble Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs 0. $50.00 $0.00 1 $50.00 $70.00 $50.00 $120.00 $50.00 $150.00 4 $50.00 $220.00 $50.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is'about O $66.67 $68.67 No answer text provided. O No answer text provided.
A firm is producing and selling some output at an average variable cost of $8 per unit and bringing in a total revenue of $400. If the firm is currently indifferent between shutting down and continuing to operate in the short run and has a total cost of $1200. What would be the firms average fixed cost of producing 80 units?
An economist estimated that the cost function of a single-product firm is:C(Q) = 60 + 30Q + 25Q2 + 5Q3.Based on this information, determine the following:a. The fixed cost of producing 10 units of output.$ b. The variable cost of producing 10 units of output.$ c. The total cost of producing 10 units of output.$ d. The average fixed cost of producing 10 units of output.$ e. The average variable cost of producing 10 units of output.$ f. The average total cost of producing 10 units of output.$ g. The marginal cost when Q = 10.$
At an output of 20,000 units per year, a firm's variable costs are $80,000 and its average fixed costs are $3. The total costs per year for the firm are: $80,000. $100,000. $140,000. $240,000.
Question 8 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Marginal Cost (MC) if it increases its Output (Q) from 20 to 40? $100 $10.00 $7.50 O $5.00 20

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