SavedSuppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will thefirm choose in producing (a) 50, (b) 130, (c) 160, and (d) 250 units of output?Average Costs504030ATCATCATC,2010130 1602505030 60 90 120 150 180 210 240 270 300Outputa. 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

a. 50 units of output - Plant Size 1 b. 130 units of output - Plant Size 2 c. 160 units of output -…

Answered: Suppose a firm has only three possible…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Fill in the following cost table. For the first few rows, you can work from left to right. However, as you get to the last two rows, you will need to use the information from the right side of the table to work back to the left side. We do not calculate average costs at a quantity of 0. Q TFC TVC TC AFC AVC ATC MC 0 5,000 0 XXXXXX XXXXXX XXXXXX XXXXXX 1 3.000 3,000 2 5,000 3 11,000 4 3,250 5 4,000 Can you tell if this is the short run or long run? Can you tell which level of output yields the highest profit? If so, what is the output level? If not, explain. Economists define the “Break-even Price” as the lowest point on the average total cost curve or the lowest average total cost given in a table. What is the break-even price in this problem? Economists define the “Shutdown Price” as the…
QUESTION 2 A firm is considering changing its plant size. It calculates the amount of output it would be able to produce and the total cost for various plant sizes, as shown in the accompanying table. If the firm is currently using plant size C, the firm is experiencing which of the following? Plant Size Quantity Total Cost ($) A 1 10 10 80 C 100 900 200 2,000 500 5,500 F 1,000 15,000 economies of scale O diseconomies of scale constant returns to scale O diminishing marginal product O increasing marginal product
$150 125 100 75 50 Cost per Unit 25 0 5 e 15 25 30 MC ATC AVC Units per day Use the graph above to answer the following question: What is the total cost of producing 15 units? Note: enter answer with only numerical values and round up to the nearest tenth. For example, if you think the answer is "$101.58" then enter the answer "101.6" in the space below.
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
Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows:Output TFC TVC TC AFC AVC ATC MC 0. 10001. 1002. 1003. 4004. 4505. 16006. 32007 6400 A) Given the partial data available, finish the table and calculate all the costs. B)What is the minimum efficient scale of Vinnie’s company?C)What is the marginal cost of 6 houses?D)If Vinnie charges $825 per house, how many houses he should paint to maximize profit
The cost information in the following table shows that as production increases Quantity produced/day Total cost Variable cost 0 $50 0 1 $75 $50 2 $110 $75 3 $155 $100 4 $210 $150 5 $270 $175 6 $345 $250 A.) variable cost increases at a uniform rate. b.) variable cost increases and then eventually falls c.) average total cost always falls d.) marginal cost eventually increases
urses H 880 alendar 24 Inbox History ? Help SC K- 7 Q A Refer to the table below, which presents costs associated with a small business selling cookies. Total cost ($) 7 Quantity O cookies 1 cookie 2 cookies 3 cookies 4 cookies 5 cookies :8: 5.3 Calculate the average variable cost of producing 3 cookies. Do not express your answer in units (i.e., if your answer is "$600", type "600"). If necessary, round your answer to one decimal place. 2 W S F2 # 3 80 F3 20 E JAN 5 D $ 4 888 R F F4 % 5 T F5 6 me F6 MacBook Air Y H & N 8⁰ 10.50 13.50 16 18 20 7 F7 U tv NAⓇ * 8 J ► 11 FO ( 9 D 1 K F9 O ) O W F10 L P Aa zoom + { 1 Submit F12 M htm deles
Assume that it costs a company approximately C(x) = 400,000 + 180x + 0.001x² dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. Use it to estimate how fast the cost is increasing when x = 10,000. $ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) C(10,000) $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. The marginal cost from (a) is ---Select--- O than the average cost from (b). This means that the average cost is ---Select--- O at a production level of 10,000 smartphones.

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