QUESTION 15Imagine a small juice producer named " Bilberry Infused Beverages" known for its refreshing beverages. Theowner, Louis, keeps track of the production costs. Recently he decided to expand his operations and producemore Juices to meet the increasing demand. Table 15.1 below shows the data he has collected: CompleteTable 15.1 below and use the information to answer the question that follows.Table 15:1 Production Costs for Bilberry Infused Beverages(4 Marks)OutputTotal cost Fixed costVariableMarginal AveragecostcostcostAveragefixed cost030O1102183224564B832876781515What is the marginal cost of producing the 8th unit of the good?a) 4b) 10c) 12d) 29

Formulas used to complete the table: TC (Total Cost): TC = TFC + TVC This formula states that the…

Answered: QUESTION 15 Imagine a small juice…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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The Trouser Company has fixed costs of 2,400 per week. In addition, we have some information about its total costs of production.Output020406080100120140TC2400530067007200770091001200017400a) For each of the output levels in the table, calculate the Trouser Company’s average variable costs (AVC), average (total) cost (AC) and marginal cost (MC).b) Sketch a diagram showing the marginal cost curve, the average variable cost curve, and the firm’s short run supply curve. c) Explain how the firm would maximise its profit, assuming that it faces conditions of perfect competition, in the short run.
Graphically Represent and analyze the interrelationship between the short run costs Units TFC TVC TC AFC AVC AC MC 0 24 0 1 24 28 2 24 54 3 24 75 4 24 96 5 24 126 6 24 168 7 24 214 8 24 264.
Use the following information to answer question 22-23 Number of Workers Hired A 5 6 7 B a) fourth b) sixth seventh d) eighth Question 22 Diminishing marginal returns set in when the process C) seventh d)eigth Number of Meats Sold Question 23 Average product will fall above marginal product when the a) fourth b) sixth 3) zero 60 140 230 total costs total variable costs 300 320 d) total fixed costs Question 24 The maximum loss a fimm should experience in the short nun is equal worker is added to the production worker is hired
H.W 7/ For the following data: Fixed cost = 100,000 ID Variable cost per unit = 300 ID Selling price per unit=500 ID n = 500 Calculate BEP by using chart method
Douglas Fur is a small manufacturer of fake-fur boots in Philadelphia. 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 (Pairs) Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 60 1 155 220 255 300 350 450 10:15
Problem 3 Belle Company produces and sells rattan baskets. The number of units produced and the corresponding total production costs for six months, which are representatives for the year, are as follows: Months Units Produced Production Costs April May June July 500 700 P4,000 8,000 6,000 7,500 900 600
Calculate the Gross Profit Ratio from the following information :- 2010 2011 Sales (Revenue from Operations) Gross Profit 1,80,000 36,000 1,20,000 30,000
In 1997 Fuller and coworkers at Texas A&M University estimated the operating costs of cotton gin plants of various sizes. The operating costs of the next to the smallest plant is shown in the following table. x 2000 4000 6000 8000 10000 12000 y 163,200 230,480 301,500 376,160 454,400 536,400 Here x is the annual number of bales produced, and y is the dollar total cost. (Use 4 decimal places in your answer.)A. Determine the best fitting line using least squares. Also determine the square of the correlation coefficient.The best fitting line is C(x) = .The square of the correlation coefficient is r2 = .B. The study noted that revenue was $63.25 per bale. At what level of production will this plant break even?The revenue equation is R(x) = The profit equation is P(x) = The production will break even when bales are produced.C. What are the profits or losses when production is 3000 bales? 4000 bales? (Round to the nearest cent.)When…
Task 3 3(a) Medi Pharma Company produces two products Mask and PPE kit (both are in high demand due to covid19). The cost structure of these two products are as follows: Selling price per unit Variable cost Contribution per unit Mask $ 100 60 PPE-kit $ 70 40 40 30 Both the products need services of lab experts with special skills. Only six experts are available with the company each working a 35 hours week (total 210 hours in total). The production of Mask need 30 minutes (0.5 hours) of experts' time and PPE-kit needs 20 minutes (0.33 hours). Required: 3(a) When there a a scarce resource, we undertake the activity that has the highest contribution per unit of scarce resource. Do you agree? Explain your point using the data of Medi Pharma. 3(b) Smart auto garage bought a machine three years ago for $ 12000. The future of this machine is uncertain and considering the replacement as it has no disposable value. Can $12000 be a relevant cost in making decision of replacing it? Smart auto…
1,200 B TC 1,000 850 700 TVC A 500 2 3 Number of microwave ovens 6. Refer to the figure above. Based on the information shown, the average fixed costs of producing two units of output are: 500 Cost in dollars
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2. What is the relationship between the total cost curve, and the average cost per unit? Explain their relationship, and draw a diagram showing how the two are related. The total cost of production, in thousands of dollars, is C(q) = q³ 12q² + 60q, where q is in thousands and 0 ≤ q ≤ 8. (a) Graph C(q). Estimate visually the quantity at which average cost is minimized. (b) Determine analytically the exact value of q at which average cost is minimized.

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