Refer to the table below. Note that the first columnshows variable costs.Quantity Cost012356(in dollars) Costs015356090Fixed Total AverageCostsTotal Costs(in (in (in dollarsdollars) per unit)dollars)16040 4040 55 55:40 75 37.540 100125 4033.340 130 32.5165 3340 200 33.3Average VariableCosts (in dollars perunit)1517.52022.52526.6MarginalCosts(in dollarsper unit)152025303540If the firm produces 5 units that it sells at a price of$30.00 each, what will its profits or losses equal?losses equal $15profts equal $15profts equal $25losses equal $25

The firm will produce where the marginal revenue is equal to marginal cost to maximize its profit.…

Answered: Refer to the table below. Note that the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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
. Given the following fixed and variable costs and the volumes, calculate the total andunit costs.
Question 1 Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. Quantity of Output Total Cost $12 1 $14 2 $18 $24 4 $32 5 $42 6 $54 7 $68 The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm's profit-maximizing quantity of hats? Explain using marginal analysis. (c) Draw a correctly labeled graph showing the firm's demand and marginal cost curves, and show the profit-maximizing quantity of hats determined in part (b). (d) If the rent of the building the firm occupies increases, what will happen to the firm's profit-maximizing quantity of output in the short…
Ball Bearings, Inc., faces costs of production as follows: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180 180 4 180 240 5 180 320 6 180 450 the following table by calculating the company's total cost, marginal cost, average fixed cost, average variable cost, and average total cost at each level of production. Quantity Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 0 1 2 3 4 5 6 The price of a case of ball bearings is $80. Seeing that he can't make a profit, the company's chief executive officer (CEO) decides to shut down operations. The firm's profit in this case is . (Note: If the firm…
Which of the curves in the following graph is the average total cost curve?
The cost structure of a manufacturer of microchips is described in the table in the next column. The firm’s fixed costs equal to $10 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. Output (microchips per day) Total Cost of Output ($ thousands) 0 10 25 60 50 95 75 150 100 220 125 325 150 465
part E
None
Average Fixed cost Average Variable Cost Average Total Cost Output 0 1 $ 180.00 $ 135.00 $ 315.00 2 $ 90.00 $ 127.50 $ 217.50 3 $ 60.00 $ 120.00 $ 180.00 4 $ 45.00 $ 112.50 $ 157.50 5 $ 36.00 $ 111.00 $ 147.00 6 $ 30.00 $ 112.50 $ 142.50 7 $ 25.71 $ 115.70 $ 141.41 8 $ 22.50 $ 121.90 $ 144.40 9 $ 20.00 $ 130.00 $ 150.00 10 $ 18.00 $ 139.50 $ 157.50 Table 1-a (continued) Marginal Cost Price Total Revenue Marginal Revenue Output 0 $ 345.00 1 $ 300.00 2 $ 249.00 3 $ 213.00 4 $ 189.00 5 $ 165.00 6 $ 144.00 7 $ 126.00 8 $ 111.00 9 $…
Answer each of the following as true or false and briefly explain your answer. 9 39 8 1a) If ec> 1, increasing returns to scale and decreasing average costs are indicated 1b) 7 17 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Average cost exceeds marginal cost at the minimum efficient scale of plant. 0 0 1c) DA When total fixed cost and price are held constant, a reduction in average variable cost will typically cause a reduction in the breakeven activity level. 10X00X0 0,0 0,0 0 When long-run average cost is decreasing, it can pay to operate smaller plants at their peak efficiency rather than larger plants with some excess capacity.
The table below shows the weekly cost of producing cowboy hats. Complete the table by filling in the missing values. Instructions: Round your answers to 1 decimal place. Cowboy Hat Production Costs Total Fixed Cost (dollars) $2,000 Total Variable Cost (dollars) Total Cost (dollars) $2,000 Average Fixed Cost (dollars) Average Variable Cost (dollars) Average Total Cost (dollars) Output $0 10 300 24 $4 $230 20 2,460 23 123 30 660 66.7 22 40 2,900 72.5 50 1,200 24
the figure below, $/Q 174 125 118 80 m 59 MC AVC ATC n 48 40 28 u Q₂ Q3 Q4 Q5 O total variable cost at Q₂ units of output is represented by the area absv (i.e., TVC(Q)area absv) and total fixed cost at Q₂ units of output is represented by the area vsQ₂0 (i.e., TFC(Qs) - area vsQ₂0). total variable cost at Q3 units of output is represented by the area ruQ,0 (i.e., TVC(Q)- area ruQ,0) and total fixed cost at Qs units of output is represented by the area zfnk (i.e., TFC(Qs) - area zfnk). O total cost at Q4 units of output is represented by the area adQ40 (.e., TC(Q) - area adQ40) and total fixed cost at Q4 units of output is represented by the area adgi (i.e.. TFC(Q4) - area adgi). O total variable cost at Q₂ units of output is represented by the area absv (i.e., TVC(Q)- area absv) and total fixed cost at Q₂ units of output is represented by the area vsQ₂0 (ie.. TFC(Qs) - area vsQ,0). total variable cost at Q3 units of output is represented by the area zhQ₂0 (i.e., TVC(Q)area zhQ,0) and…

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