fast please 21. ### Cost Analysis of Lotus LanternsThe table provided presents cost data for Lotus Lanterns, a company that produces whimsical night lights. The table includes various quantities of lanterns, associated fixed and variable costs, total costs, and average total costs.#### Table Data:- **Columns:** - **Quantity of Lanterns:** Number of lanterns produced. - **Fixed Cost (Dollars):** Constant cost ($200) despite changes in production level. - **Variable Cost (Dollars):** Costs that change with production level. - **Total Cost (Dollars):** Sum of fixed and variable costs. - **Average Total Cost (Dollars):** Total cost divided by quantity of lanterns.- **Table Entries:** - Producing 75 lanterns incurs a variable cost of $170, with total costs being $370 and average costs at $4.93. - At 80 lanterns, variable costs rise to $230, totaling $430, with an average cost of $5.36. - At 90 lanterns, the variable cost is $300, leading to a total of $500 and an average of $5.56. - At 100 lanterns, these costs are $200, $810, $1010, and $10.1, respectively. - The production of 115 lanterns results in a $1000 variable cost, $1200 in total, and an average cost of $11.8. - At 117 lanterns, variable costs are $1264, total cost is $1464, average cost is $12.5. - Lastly, producing 120 lanterns has a variable cost of $1480, leading to a total cost of $1680 and an average cost of $14.#### Question:What is the marginal cost per unit of production when the firm produces 100 lanterns?- **Options:** - A. $32 - B. $8.1 - C. $11.1 - D. $320To calculate the marginal cost per unit, determine the change in total cost when increasing production from one level to the next.This table is a tool for understanding cost structures and helps determine economically viable production levels.

Variable costThe total expenses for a firm are composed of two branches. The fixed expenses are the cost of buildings, land, and machinery that is incurred regardless of the quantity of production. The other part of the cost is the variable expenses which include labor and materials which are costs incurred as parts or services are produced.Answer - Option A $32Marginal cost per unit of 100th lantern = (TC of 100 lantern - TC of 90 lantern) / 10TC of 100 lantern = 200+810= 1010 dollars TC of 90 lanterns = 7.67*90= 690.30MC of per unit when firm produces 100 lanterns = (1010-690.3)/10= 31.97 dollarsOR 32 dollars which represents option A. Answer - Option A 32 dollars

Business

Economics

Refer to the table to the right which shows cost data for Lotus Lanterns, a producer of whimsical night lights. What is the marginal cost per unit of production when the firm produces 100 lanterns? O A. $32 O B. $8.1 OC. $11.1 O D. $320

Refer to the table to the right which shows cost data for Lotus Lanterns, a producer of whimsical night lights. What is the marginal cost per unit of production when the firm produces 100 lanterns? O A. $32 O B. $8.1 OC. $11.1 O D. $320

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If…

A: We have given the following information Type of pass Price in 2018 Number of passes sold in 2018…

Q: In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If…

A: Total Revenue is the product of price and quantity Elasticity measures the change in quantity due…

Q: I used to buy 3 movies a month, but when Connecting U dropped the price of a gigabyte of data from a…

A: Demand elasticity refers to how the demand, for a product or service changes when its price changes…

Q: DEMAND (UNITS) 4,130 4,230 3,930 4,330 4,930 4,630 5,230 4,830 5,330 5,630 MONTH January February…

A: Regression Model (Linear): Let Y = a + bx be the Liner Regression Equation. Y= Forecast, b is the…

Q: > Why might your initial elasticity (PED) and (PES) calculations be unreliable?

A: The initial elasticity (PED) and (PES) calculations are unreliable.

Q: Demand for blue-fin tuna Price ($/lb) Quantity demanded (lbs) 30 700 60 600 90…

A: 1. The quantity demanded at the price of $150 per pound is given to be 300 pounds. The captain of…

Q: How do I calculate new Qs for supply and demand?

A: A market demand schedule and market demand curve helps to determine the change in demand. A market…

Q: If the market for hula hoops is characterized by a very inelastic supply curve and a very elastic…

A: The issue addressed in this case is analyzing an outward shift of the demand curve for hula-hoops,…

Q: From the graph it is clear that the demand for gasoline is relatively • Jand the supply for gasoline…

A: Elasticity is the ratio of the percentage change in the quantity demanded because of the percentage…

Q: (A) what does the measure price elasticity of demand mean? (b) how is it calculated? (c) if you…

A: Answer: (a). Price elasticity of demand: price elasticity of demand measures the sensitivity of…

Q: You are a manager in charge of monitoring cash flow at a major publisher. Paper books comprise 40…

A: The cross elasticity of demand is a financial idea that actions the responsiveness in the amount…

Q: Mr. Ali was buying 10 kg of sugar when the price of one kg was Rs 100. Now the price has come down…

A: Elasticity refers to a criteria which measures the responsiveness of one variable due to the change…

Q: A clothing store decreases the price of its T-shirts from $20 to $12. Correspondingly, sales…

A: Total Revenue = Price*Quantity So when the price is $20 then the Total Revenue is 20*1200 = $24000…

Q: Why is increase in price money likely to decrease the total revenue of seller in the long run than…

A: Total revenue of a seller is price times quantity of output sold.

Q: Need number 4 and 5 answered Elasticity: What is elasticity? Elasticity refers to the concept…

A: Price Elasticity of Demnad maesures the percentage change in quantity demnaded due to percentage…

Q: You have estimated that the price elasticity of demand for chai at your cafe is 0.9. If you lower…

A: Price elasticity of demand refers to the level with which the demand for a good or service changes…

Q: Exercise: elasticity of demand Destination Income Elasticity Price elasticity FR 2.817…

A: The study of both income elasticity and price elasticity of demand in the tourism industry gives a…

Q: A local sports store had been selling an average of 187 jogging outfits per month over 6 months at…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Question

fast please 21.

### Cost Analysis of Lotus Lanterns

The table provided presents cost data for Lotus Lanterns, a company that produces whimsical night lights. The table includes various quantities of lanterns, associated fixed and variable costs, total costs, and average total costs.

#### Table Data:
- **Columns:**
- **Quantity of Lanterns:** Number of lanterns produced.
- **Fixed Cost (Dollars):** Constant cost ($200) despite changes in production level.
- **Variable Cost (Dollars):** Costs that change with production level.
- **Total Cost (Dollars):** Sum of fixed and variable costs.
- **Average Total Cost (Dollars):** Total cost divided by quantity of lanterns.

- **Table Entries:**
- Producing 75 lanterns incurs a variable cost of $170, with total costs being $370 and average costs at $4.93.
- At 80 lanterns, variable costs rise to $230, totaling $430, with an average cost of $5.36.
- At 90 lanterns, the variable cost is $300, leading to a total of $500 and an average of $5.56.
- At 100 lanterns, these costs are $200, $810, $1010, and $10.1, respectively.
- The production of 115 lanterns results in a $1000 variable cost, $1200 in total, and an average cost of $11.8.
- At 117 lanterns, variable costs are $1264, total cost is $1464, average cost is $12.5.
- Lastly, producing 120 lanterns has a variable cost of $1480, leading to a total cost of $1680 and an average cost of $14.

#### Question:
What is the marginal cost per unit of production when the firm produces 100 lanterns?

- **Options:**
- A. $32
- B. $8.1
- C. $11.1
- D. $320

To calculate the marginal cost per unit, determine the change in total cost when increasing production from one level to the next.

This table is a tool for understanding cost structures and helps determine economically viable production levels.

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: Define variable cost

VIEW

Step 2: Choose correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

Calculate the value of Total revenue if price per kg of apples are $15 and the total quantity of apples sold is 20 kg
Elasticity: Measuring Responsiveness End of Chapter Problem You may have observed that items such as different brands of aspirin, tomato sauce, or gasoline are typically priced the same as each other. This is particularly true when consumers can find these goods in close proximity to each other. For example, prices are often the same at gas stations that are on opposite sides of the street. Prices are also generally the same for products next to each other on the same grocery store shelf. - The aforementioned examples are goods that are likely to be price elasticity to be You would expect the value of the cross- because the opportunity cost of getting information on price is low.
Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99. The price elasticity of demand for Amazon membership subscription in this price range is estimated at -0.8. You predict that the number of Prime subscriptions will (increase/decrease) increase Aby (enter a number rounded to one digit after the decimal point, e.g., 22.2) A/ % and that Amazon's revenue will (increase/decrease) A by (enter a number rounded to one digit after the decimal point, e.g., 9.9) A %.
Only type answer and give answer fast
Answer the question using the 3 -step approach 2. Due to Covid 19, there has been a major delay with the shipping lines causing an increase in shipping costs for major retailerShipping cost is a major cost component for shea products. How will Covid affect the supply and demand for Shea products? 3. A 12 % increase in the price of fuel reduces the quantity of fuel demanded by 3 %. What is the price elasticity of demand for fuel?What can you say about elasticity?
Economics Over the past decade, holiday gift cards have become increasingly popular at online retailers. Not long ago, online shoppers had to really hunt at most e-retailer' sites to purchase a gift card, but today it is easier to purchase gift cards online than at traditional retail outlets. Provide a comprehensive initial post answering the following questions: Do you think online gift cards are merely a fad? Explain carefully.
(i) InfoConsider the three demand functions in the file Elasticity. Calculate the elasticities of these three demand functions when the price of the product increases from P = $200 per unit to P = $400 per unit. Enter the elasticities as positive numbers. Elasticity of the red demand function = Elasticity of the green demand function = Elasticity of the blue demand function =..
Can you explain the difference between an elastic and inelastic product?
For each example listed, decide if the good is a normal good or an inferior good. Make sure you answer from the perspective of the individual or individuals doing the buying or consuming. Billy's mom increases his weekly allowance by %5. As a result, Billy increases the number of apps he downloads on his smartphone. Smartphone apps are
What are some other examples of elasticity that can be affected by time?
Calculate the number of quantity produced when Total revenue is 80 and the average revenue is 10
The municipal corporations in most parishes in Jamaica have initiated a program to charge residents for garbage disposal based on the number of cans filled per week. The parish of Kingston decided to increase its per-can price from $500 to $750 per week. In the first week, it was found that the number of cans that were brought to the curb fell from 500 to 450 (although the workers complained that the cans were heavier). The chief economist ran the numbers, informed the mayor that the demand for disposal was inelastic, and recommended that the price be raised to maximize town revenue from the program. Four months later, at a price of $1000 per can, the number of cans has fallen to 125 and town revenues are down. What might have happened?