5 Refer to the figure on the right. Suppose the output of a largealuminum firm drops from 2 million pounds to 1 million pounds peryear. The long-run average cost of producing aluminum will go from$ to $. (Enter your responses rounded to the nearest penny.)(...)))Cost per pound$2.80 f2.101.608d ccb1.00 1.50 2.00 2.500.50Million of pounds of Aluminum per yearLAC

The long-run average cost curve is a curve that shows that as the output increases in the long run,…

Refer to the figure on the right. Suppose the output of a large aluminum firm drops from 2 million pounds to 1 million pounds per year. The long-run average cost of producing aluminum will go from sto $. (Enter your responses rounded to the nearest penny.)

Refer to the figure on the right. Suppose the output of a large aluminum firm drops from 2 million pounds to 1 million pounds per year. The long-run average cost of producing aluminum will go from sto $. (Enter your responses rounded to the nearest penny.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

See similar textbooks

Related questions

Q: QUESTION 21 20 18. 16. 14. 12 10 S 6 4 Chile's Production Possibilities Frontier soybeans (in…

A: 21) The production possibilities curve (PPC) is a graph or a figure that depicts all the possible…

Q: If the inverse demand function for toasters is p=70-2Q, what is the consumer surplus if price is…

A: The Consumer surplus, as used in economics, is the difference between the price a consumer pays for…

Q: Determine the dominant economic factors of the energy sector in kenya

A: The energy sector plays a vital role in the development of any country, and Kenya is no exception.

Q: ABSOLUTE ADVANTAGE & COMPARATIVE ADVANTAGE Q.6. An average worker in brazil can produce an ounce of…

A: Absolute advantage refers to the ability of the country or individual to produce the good in less…

Q: Suppose the labor market is initially at its equilibrium, i.e., labor supplied equals labor…

A: Since you have asked multiple question, we will answer first question for you. If you want any…

Q: What is the main purpose of a social welfare function? O To help us match buyers and sellers in…

A: A social welfare function is a mathematical depiction of a society's total well-being that accounts…

Q: The price of a product was $0.88 in the year 2008 and $1.28 in the year 2018. What is the average…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In an economy, the working-age population is 400 million. Of this total, 300 million workers are…

A: Unemployment rate is the rate where persons who are neither nor unemployed are not considered in the…

Q: what is meant by a recessionary gap and an inflationary gap in the AD/AS model.

A: Introduction The AD/AS Model is a macroeconomic model used to analyze and explain the aggregate…

Q: Suppose that Ireland and Luxembourg both produce boots and broccoli. Ireland's opportunity cost of…

A: The opportunity cost helps to determine the comparative advantage for an economy; thus with a…

Q: A monopolist is forced to lower its price in order to sell another unit of its product. This…

A: Monopoly is defined as a market structure characterized by only a single seller of the good who…

Q: Evaluate this statement The mutually preferred outcome in a prisoner's dilemma is the Nash…

A: The Nash equilibrium is a concept in game theory named after John Nash, a Nobel Prize-winning…

Q: Question 6 Suppose 3 P = P*; 3 Qd = Qs = Q* Numerically calculate the equilibrium price and quantity…

A: Demand-supply equilibrium: The demand function determines the willingness to pay of an individual…

Q: Suppose that in an economy with no government, the aggregate expenditure function is: AE = 50+0.75Y…

A: The aggregate expenditure function is the graphical representation of planned expenditure in the…

Q: c. What is the opportunity cost of moving from point A to point B? d. What is the opportunity cost…

A: Note: “Since you have posted a question with multiple sub-parts, we will provide the solution only…

Q: An environmental issue discussed by most companies in their sustainability disclosures includes the:…

A: The ability to maintain or keep a specific degree of wellbeing or environment, often over a long…

Q: 6.25 5.00 4.00 0₂ 01 Quantity of Good X Refer to Figure 19-2. The market for good X is initially in…

A: The effect of tax on the supply-demand equilibrium is to shift the quantity towards a point where…

Q: Assume that the following data describe the current condition of the commercial banking system:…

A: Required reserves = Reserve requirement * Transactions depositsRequired reserves = 0.10 * $800…

Q: If a bank has $10,000,000 in deposits, excess reserves of $5,000,000, and required reserves of…

A: Given information Deposits with bank= $10,000,000 Excess reserves = $5,000,000 Required reserves of…

Q: I'm unsure about the two Ps in the final part of the answer. Are those both the same variable? It…

A: The doubt asked by you has been resolved as under.

Q: A consumer has an original income M to spend on goods X and Y. The market price of these two goods…

A: Budget constraint shows the combination of two goods that can be purchased with the given income.…

Q: how did we arrive at MC(Q) = 30 + 50Q + 15Q²?

A: Marginal cost is the cost of producing an additional unit of good. Marginal cost is calculated as…

Q: Real versus nominal GDP Consider a simple economy that produces two goods: stickers and paper…

A: The market value of the products and services produced during a given period is known as the nominal…

Q: QUESTION 15 Which of the following is NOT true about rational individuals? A. Rational people have…

A: A person who consistently and optimally chooses given their aims and restrictions is referred to as…

Q: Compare and contrast the Keynesian approach to the management of the level of aggregate demand to…

A: Aggregate demand (AD) is a macroeconomic concept that represents the total amount of goods and…

Q: We need to use implicit differentiation to derive comparative statics results in the case where: O…

A: Implicit differentiation is a mathematical technique used to find the derivative of an implicit…

Q: Americans spend an average of 23.6 hours per week online, with a standard deviation of 7. The…

A: Since the distribution of internet watching is not necessarily normally distributed, we cannot use…

Q: 1. Increase in budget deficit in closed economy: Investments curve = Savings curve = Interest rate=

A: In a market economy, the price at which a product is sold and the quantity of the product produced…

Q: If the value of a bank's loan declines, what is the corresponding reduction on the other side of its…

A: Bank loans are on the assets side of the bank's balance sheet because these are promises to pay…

Q: If $11,500 per quarter is invested in an account that earns a nominal annual interest rate of 9%…

A: Compounding refers to the process of generating interest on an investment over a usual period of…

Q: ir travel has a correlation to the economic impact of the hotel industry. This is ar xample of to…

A: An economic impact analysis (EIA) studies the effect of an event on the economy in a particular…

Q: The concept of rapid small-scale experimentation allows an entrepreneur to do all the following,…

A: Enterpreneurship refers to one of the ways to start a business with new and innovative ideas that…

Q: Homework Question 8: The Price is Never Right This question is designed to get you to think about…

A: Consumer Price Index (CPI): The Consumer Price Index (CPI) is a measure of the average change in…

Q: If MRP of labor < wage rate, a firm should hire more workers. TRUE OR FLASE.

A: In economics, a firm refers to an organization that produces goods or services for the purpose of…

Q: Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of…

A: The total surplus in a market is a computation of the total well-being of all contributors in a…

Q: QUESTION 18 Amir and Samir run a business that sets up and tests computers. Assume that Amir and…

A: Constant rate means that there is no change in the rate throughout.

Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…

A: GDP is the sum of consumption, investment, government expenditure and net exports in an open…

Q: Explain the long run equilibrium situation for a monopolistically competitive industry. Give two…

A: Monopolistic Competition: A monopolistically competitive market is identified by many purchasers and…

Q: James is considering a project which would cost $10,000 now. The annual benefits, for 4 years, would…

A: Net present value is present value of cash inflows less present value of cash outflows. Present…

Q: 2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns a 14-acre plot of…

A: Absolute advantage occurs when an country can produce more of goods than other country with the same…

Q: Can a “Black Market” be justified? First answer either YES or NO. Describe why be explaining your…

A: A black market is a platform in which lots of transactions are carried out either physically or…

Q: The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost…

A: Consumer surplus is a measure of the economic welfare gained by consumers when they purchase goods…

Q: u are conducting a hypothesis test on the body weights of male fraternity members. The research…

A: Given information: The alternative hypothesis is that the average weight is greater than 200 lbs.…

Q: Explain in detail. How externality can lead to a market failure?

A: An externality is an unintended side effect of a production or consumption activity that has an…

Q: 2. The market for capital The following graph shows the supply of and demand for capital in a market…

A: Changes in demand means an increase or decrease in the volume of demand and supply from its…

Q: Draw graphs to illustrate the difference between a decrease in the quantity demanded and a decrease…

A: Demand in economics refers to the quantity of a good or service that consumers are willing and able…

Q: Initial deposit ($100) The Money Multiplier Process Loan Loan $ University Bank Excess reserves: $25…

A: A loan is a form of borrowing in which a lender provides an amount of money to a borrower with the…

Q: Olivia has received a $15 gift certificate that is redeemable only for roasted peanuts. Bags of…

A: A graph of two products combined that provide the consumer with equal utility and satisfaction is…

Q: Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost…

A: The present value of an asset is the value of that asset today, taking into account the time value…

Q: The following graph shows the annual market for Florida oranges, which are sold in units of 90-…

Question

Refer to the figure on the right. Suppose the output of a large
aluminum firm drops from 2 million pounds to 1 million pounds per
year. The long-run average cost of producing aluminum will go from
$ to $. (Enter your responses rounded to the nearest penny.)
(...)))
Cost per pound
$2.80 f
2.10
1.60
8
d c
c
b
1.00 1.50 2.00 2.50
0.50
Million of pounds of Aluminum per year
LAC

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Q2. Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has a determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometers. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. (The Singapore dollar is the currency used in Singapore). a. Using the high-low method, estimating the variable and fixed cost elements of the annual cost of the truck operation. b. Express the variable and fixed costs in the form Y= a + bx. c. If a truck were driven 80,000 kilometers during a year, what total cost would you expect to be incurred?
Q4- A firm producing lamps has fixed costs of €1000 per week. 1) f a kamp costs €15 to produce. (a) Write down the equation for total cost. (b) Graph the total cost function for Q = O to 100 (c) Calculate the cost of producing 25 lamps. (d) How many lamps are produced when total costs are C7000? 2) If the lamps are sold for €35 each. (a) Write down the equation for total revenue. (b) Graph the total revenue function for Q = 0w 100. (c) How many lamps are sokl when total revenue is €1750? (d) Does the firm's revenue exced costs when 80 lamps are sold? Calculate the rofit/loss when 80 lamps are sold.
Title TC = 160(Q) – 20(Q)2 + 1.2(Q)3.Calculate the total, marginal and average costs for the first ten... Description TC = 160(Q) – 20(Q)2 + 1.2(Q)3.Calculate the total, marginal and average costs for the first ten quantities (in R million).
Cost analysis. A company with two different plants manufactures guitars and banjos. Its production costs for each instrument are given in the following matrices. Plant X Plant Y Guitar Banjo Guitar Banjo Materials $45 $28 $95 $124 =A $60 $58 $119 $120 =B Labor Find 12(A+B), the average cost of production for the two plants. = $enter your response here $enter your response here $enter your response here $enter your response here (Type integers or decimals.)
.s) Suppose that a company has fixed costs of 300300 dollars and variable costs of 0.75x+14200.75x+1420 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1550-0.3x1550-0.3x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one. (a) Find the break-even points. The larger number of units at which break- even occurs is , with corresponding revenue dollars. and The smaller number of units at which break- even occurs is , with corresponding revenue dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)
2. What is the relationship between the total cost curve, and the average cost per unit? Explain their relationship, and draw a diagram showing how the two are related. The total cost of production, in thousands of dollars, is C(q) = q³ 12q² + 60q, where q is in thousands and 0 ≤ q ≤ 8. (a) Graph C(q). Estimate visually the quantity at which average cost is minimized. (b) Determine analytically the exact value of q at which average cost is minimized.
Q7/ IF you know that the total profit of a pharmaceutical factory is (500) RS, the cost price is (150) RS and breakeven point in units is (600) RS, Find : 1- The total cost of production. 2- when the factory reaches the break-even point in sales.
Consider a power system with three generators. Each generator has a piecewise linear cost function defined by the following points. Generator 1 Generator 2 Generator 3 Production (MWh) 100 200 300 400 200 400 600 800 100 400 700 1000 Cost ($) 915 1760 2635 3540 1870 3530 5230 6970 1060 3460 6040 8800 The min/max production of each generator corresponds to the min/max production values in the table (i.e., Generator 1 produces at least 100 MWh and no more than 400 MWh). (a) Plot the inverse supply function for this system. (b) If the demand is completely inelastic and equal to 1600 MWh į. compute the electricity price. ii. calculate the gross consumer surplus, consumer surplus, the producers revenue, the producers profit, and the global welfare. iii. determine the production level, cost, revenue, and profit for each generator.
A firm has the following information on production Q.6 and costs from past data: Output Total Cost (ТC) (Y) 6. 12 18 9. 2775 5361 8199 If the total function is known cost to be ТС - аY + br+kY+ f. and the demand for the %3D product of the firm is Y = 320- (1/2). P answer the following: Determine the coefticients of the cubic cost function. Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of oulput and price. What is the relationship between price, marginal revenue and own price elasticity of demand at maximization point. the profit
show solution An oil refinery produces one base type of crude oil. The total cost is given by the equation Total Cost, TC = 50,000+20.2D +0.0001D2. The sales price in dollars per barrel is 35. At what level of production in barrels/week is cost/barrel minimum? What is the minimum cost per barrel? What is the maximum weekly profit that the company can make? At what level of production is the maximum weekly profit attainable? and Over what range of production is profit possible? Express answers in whole numbers and write the numerical values only.
%3D A manufacturer has determined the marginal-cost function dc/dq below, where q is the number of units produced. If marginal cost is $70.00 when q = 50 and fixed costs are $5000, what is the average cost of producing 500 units? dc = 0.012q - 0.4q + 60 dq The average cost of producing 500 units is $
Saved Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will the firm choose in producing (a) 50, (b) 130, (c) 160, and (d) 250 units of output? Average Costs 50 40 30 ATC ATC ATC, 20 10 130 160 250 50 30 60 90 120 150 180 210 240 270 300 Output a. 50 units of output: (Click to select) b. 130 units of output: (Click to select) c. 160 units of output: (Click to select) d. 250 units of output: (Click to select) ATC