Suppose that you operate a business that produces widgets. What's a widget? A widget is a hypothetical product with no particular attributes or features to confuse us. Just widgets. In the course of a month, you produce 5,000 widgets. You only have three inputs when producing widgets; 1) factory space; 2) labor; and 3) raw materials. You pay rent of $4,000 per month. Your use of labor and raw materials depends on how many widgets you produce. When you produce 5,000 widgets, your labor costs are $5,000 and your raw material costs are $1,500. What is your average fixed cost of producing 5,000 widgets? (Enter your answer without a dollars sign ($) in the following form: (i.e., dollars and cents)

Suppose that you operate a business that produces widgets. What's a widget? A widget is a hypothetical product with no particular attributes or features to confuse us. Just widgets. In the course of a month, you produce 5,000 widgets. You only have three inputs when producing widgets; 1) factory space; 2) labor; and 3) raw materials. You pay rent of $4,000 per month. Your use of labor and raw materials depends on how many widgets you produce. When you produce 5,000 widgets, your labor costs are $5,000 and your raw material costs are $1,500. What is your average fixed cost of producing 5,000 widgets? (Enter your answer without a dollars sign ($) in the following form: (i.e., dollars and cents)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a pizza parlor has the following production costs: $3.00 in labor per pizza, $2.00 in ingredients per pizza, $0.30 in electricity per pizza, $4,000 in restaurant rent per month, and $400 in insurance per month. Assume the pizza parlor produces 8,000 pizzas per month. What is the variable cost of production (per month)? The variable cost of production is $ (Enter your response as an integer.)
Question 3 A company produces three products which must be processed through three departments. The following table summarizes the labor hours and raw material requirements required per unit each department. Each month there are 1300, 4700 pounds of raw material available. If the combined monthly production for the three departments should equal 400 units. Determine whether there is a combination of the three products which could be produced monthly so as to consume full monthly labor availabilities and raw material of all departments. Product 1 Product 2 Product 3 Labor-hours/unit 5 4 Pounds of raw material / unit 15 10 12 Question 4 The supply and demand functions for a product are 4s = p² – 300 and qa = p² – 30p + 2200. Determine the market equilibrium price and quantity.
please pick an example of three types of costs that a business can incur and briefly explain whether or not they are fixed, variable or a combination of the two. Make sure that you are clear in your description and explanation.
A student once said she 'didn't believe in sunk costs. She meant that the idea that 'some costs are sunk and shouldn't be accounted for in making decisions' didn't make sense and that all costs associated with a project were important. Do you think the concept of sunk costs is important to business decision-making? Why or why not?
Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn’t using it as a home office. He must purchase office supplies worth $85 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $17,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? $
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