Suppose you are given the following table (note: labor is the only variable input and all workers are paid equally): Labor Quantity Fixed Costs Variable Costs Total Costs 0 units $10 10 units 18 units 20 units 0 1 2 3 $50 What is the value of this company's fixed costs? O a. $0 O b. $10 O c. $20

Suppose you are given the following table (note: labor is the only variable input and all workers are paid equally): Labor Quantity Fixed Costs Variable Costs Total Costs 0 units $10 10 units 18 units 20 units 0 1 2 3 $50 What is the value of this company's fixed costs? O a. $0 O b. $10 O c. $20

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: Explain the indicated picture

A: The monetary worth of goods and services purchased by producers and consumers is referred to as…

Q: Camille's variable cost, VC is his wage cost ($80 per worker per day) and his other input costs…

A: Total cost = Total fixed cost + Total variable cost Average cost = Total cost / OUTPUT MC = TCn -…

Q: Why do average variable costs eventually rise if a company's output increases enough? O Diminishing…

A: Costs refer to the expenses that firms incur to purchase raw materials and the factors of production…

Q: The first two columns in the following table give a firm's short-run production function when the…

A: Given:- Price of capital=$2000 Price of labor=$500 Capital constant at 5 units

Q: QUESTION 33 Assume that over the long run, a firm increases their scale of operation and hires…

A: Here, it is given the firm decides to increase its scale of operation due to which it employs double…

Q: Average variable cost is at a minimum at the same output at which Select one: O A. average product…

A: Average variable cost (AVC) is the variable cost per unit of output.Average product (AP) is the…

Q: A company produces canned drinks and sells them to supermarkets at $2 per unit. The resources the…

A: The optimal quantity of output is such a quantity of output where profit is maximized.

Q: Maria's sandwich shop finds that when it caters 45 meals a week, its total cost is $8,500. If Maria…

A: Total Cost = 8,500 Total Variable = 6,500 N Number of meals = 45 per week

Q: A firm is characterized by the following total cost function: TC = 16 + 4Q + 2Q2 Which of the…

A: We are going to solve for minimum possible average cost to answer about economies of scale.

Q: ADVANCED ANALYSIS A firm faces the following costs: total cost of capital = $2,50O; price paid for…

A: a. TC = $2500 + 100 x $14 + 450 x $4 TC = $2500 + $1400 + $1800 TC = $5700 ATC = TC/Output =…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

Q: Variable Input 1 $20 A Variable Input 2 Fixed Input Price $30 $40 Marginal Product B 60 Suppose you…

A: A variable input is a factor of production that can be easily adjusted or varied in the short run to…

Q: Implicit costs are: O a. Cost for the self-employed resources O b. All of these O c. Cost incurred…

A: Implicit costs can be defined as the costs which is the part of the production but do not come into…

Q: Cost £ AC Quantity per week Q Figure 3 Short run average cost curve for a firm Figure 3 shows the…

A: Cost refers to the value of all the inputs that are used up in the production of a good or in the…

Q: 1.A 15 per cent increase in all inputs leads to only a 5 per cent increase in the output. Are the…

A: answer 1. 15 % increase in all inputs leads to only 5% increase in output means the returns to scale…

Q: In the short run, the cost of O a. capital; labor O b. labor; capital c. electricity; wages d. raw…

A: In economics, the analysis of costs for a firm may be carried out in the short run or long run. The…

Q: I’m trying to practice how to derive Lorn run and short run cost functions could I have explanations…

A: Production function : Q=L1/2K1/2 Marginal Product of Labor=MPL=dQ/dL=1/2L-1/2K1/2 Marginal Product…

Q: Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3.Please resubmit the question…

Q: XX XX XX XX 20 4,000 40 10,000 60 15,000 80 19,400 100 23,000 a. Complete the table. b. What is the…

A: *Answer: a.

Q: What is the diference between total cost and variable cost in the long nun? in the long run OA the…

A: The total cost incurred to produce a certain product or a service is called the cost of production.…

Q: QUESTION 18 Suppose the short-run production function is q= 2LO5. If the marginal cost of producing…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: is the firm's total cost function? TC = 20,000 + (1,000q). TC = 1,000q. TC = 20,000. 20,000 +…

A: A firm has a fixed production cost of $20000 and a constant marginal cost of production of $1000 per…

Q: 21

A: Short run production function means where only one factor is variable in nature and other factor…

Q: Which of the following statements is NOT correct? O The long-run total cost curve is the lower…

A: Marginal rate of technical substitution is the rate at which input factor labour and capital is…

Q: il to his long run average cost of production ter than his long run average cost of production than…

A: Economies of scaleLong-run ATC falls as yield increments. Diseconomies of scale Long-run ATC ascends…

Q: What is the law of diminishing returns? O Additional units of fixed inputs provide less additional…

A: diminishing returns is the decrease in marginal output of a production process as the amount of a…

Q: QUESTION 13 Suppose that in the short run, the firm which has production function 11 must use 9 F(L,…

A: Production Function : F(L,M)=4L1/2M1/2Machine : M=9Output : F=108Cost of Labor : w=$5Cost of Machine…

Q: As the accounting industry expands, the demand for certified public accountants (CPAs) also…

A: Demand refers to the desire or willingness of individuals or organizations to purchase a particular…

Q: The difference between the short run and the long run is that: O A. In the short run all inputs are…

A: The long-run is best defined as a time period during which all inputs can be variable. It provides…

Q: Q.5.2 Table 1 below, shows the output of 6 machinists in the sewing section of the business on a…

A: Answer: Law of diminishing returns: the law of diminishing returns is also known as the law of…

Q: A firm's total cost is $12,000. Its variable cost is $5,500. What is the firm's fixed cost?

A: Correct : Fixed cost= $6500 Fixed cost is the part of total cost that does not depend on output and…

Q: QUESTION 8 Which of the following statements concerning the relationships between total product…

A: We can answer this question using subsequent graph of the Total Product, Marginal Product and…

Q: Given the total cost function TC - 2,000 + 2*Q. when output is 1,000 units average total costs are.…

A: The formulas for cost are: 1. Total Cost = Fixed Cost + Variable Cost 2. Average Total Cost = Total…

Q: Consider the three figures below, depicting possible cost functions for a firm. The horizontal axis…

A: The summation of all of the costs being incurred in the production for a specific output level by a…

Q: Suppose a particular firm exhibits constant returns to scale as it increases its output over any…

A: Returns to scale refers to proportional change in total cost in response to proportional change in…

Q: Suppose a firm is operating at an input combination such that MRTS,LK How should the firm adjust its…

A: Firm will maximize profits when MRTS is equal to price ratio of two inputs.

Q: In the short run, if average variable costs equal $60, average total costs equal $70, and output…

A: Total Cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: The law of diminishing marginal product states that: O A. in the long run as the firm uses more of a…

A: The marginal product can be defined as a change in the total product when an additional variable…

Q: Suppose you have a pizza shop. Your rent is $800 and you've spent $1950 on labor and materials to…

A: Given: Cost of Rent = $800 Cost of Labor & raw material to make pizza= $1950

Q: A firm's production function takes the form: Q(L, K) = min{2L, 3K), where Q represents output and L…

A: Marginal cost is the change in total cost incurred to produce an additional unit of output.

Q: L MPL VC AFC AVC ATC MC (workers) (units) (units) FC ($) (S) TC (S) ($) (S) ($) ($) 1 400 900 3…

A: Hi Student, Thanks for posting the question. As per the guideline, we are providing answer for the…

Q: O At every output level the marginal product curve lies above the average product curve. O The…

A: Marginal product can be characterized as the additional measure of item/product a firm can create…

Q: Which of the following must be true if a fim is experiencing diminishing retums? O Average product…

A: The stage of diminishing returns is characterized by falling total product, average product and…

Question

Suppose you are given the following table (note: labor is the only variable input and all
workers are paid equally):
Labor Quantity Fixed Costs Variable Costs Total Costs
0 units
$10
0
1
2
3
10 units
18 units
20 units
$50
What is the value of this company's fixed costs?
O a. $0
O b. $10
O C. $20
O d. $30
O e. $50

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 cost

VIEW

Step 2: Calculate FC

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

Let's assume that a firm produces 60 products. Its total weekly cost (TC) at this output is $2,100. This includes TVC and TFC. We also know that the firm employs 3 part- time workers at a wage cost of $600 per worker per week. This is the firm's only variable cost (TVC). What is the firm's average fixed cost (AFC) at this output? O $2.50. O $2. O $5. O $100. O $10. Let's assume that a firm's total weekly costs are as follows: 1. Salaries of hired workers $5,000. 2. Supplies = $1,000. 3. Rent = $600, 4. The owners have invested a certain amount of their own money into the business. This could have earned them interest of $200 per week if they had chosen to put it into a bank instead of investing it into their business. 5. The value of the owner's time is estimated to be $800 per week. What are the firm's total economic costs? O $6.000 O $7.600. O $900. $7.500. O $6.700.
O Question 2 The average total cost curve is intersected at its minimum point by the average variable cost curve only. the marginal cost curve only. both the average variable cost curve and the marginal cost curve. neither the average variable cost curve or the marginal cost curve. T OL
4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of operation. Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to scale, and diseconomies of scale. Identify each of these sections of the cost curve and explain why each section exemplifies its specific type of return to scale.
Question 6 A production function defines the output that can be produced: O A. as technology changes over time. B. if the firm is technically efficient. O C. for the average firm. O D. in a given time period if no additional inputs are hired. O E. at the lowest cost, given the inputs available.
30 L* Output 0 10 20 30 40 50 60 70 100 The price of labour is $30 per unit and the price of capital is $60 per unit. The 30th unit of output adds $ 20 32 66 To produce 20 units of output the firm needs to hire 60 K* 12 26 To produce 70 units of output the firm needs to hire 52 to long-run total cost. The Long Run Average Cost of producing 50 units of output is $ The Long Run Total Cost of producing 60 units of output is $ LTC 1080 3060 units of labour. 8400 units of capital. LAC 72 97.5 LMC 36 114
Show working
A firm has a fixed production cost of $1,000 and a constant marginal cost of production of $700 per unit produced. What is the firm's total cost function? O A. TC = 1,000 + (700q) O B. TC = 1,000 + (700q). OC. TC = 700q. O D. TC = 1,000. The firm's average total cost (ATC) of production is O A. ATC = 1,000 + (700q). OB. 1,000 + (700q) ATC = Oc. 1,000 ATC = O D. ATC = 700q. O E. ATC = 700. If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain. OA. very small because the average total cost of production rises with output. O B.- very large because the average variable cost of production falls with output. OC. very small because the average fixed cost of production rises with output. O D. very small because the total cost of production rises with output. O E. very large because the average total cost of production falls with output.
4) Suppose that a firm's production function is Q = Lº.4K0.6. The cost of a unit of labor is $8 and the cost of a unit of capital is $12. Write firm's long run cost function. Calculate the slope of isocost line. Calculate marginal rate of technical substitution. d. Suppose firm decides to produce 50 units, what is the cost minimizing combination of these two resources (labor and capital)? a. b. C.
A firm's production function takes the form: Q(L, K) = min {8L, 6K}, where Q represents output and L and K represent labour and capital, respectively and where w and r give the prices of labour and capital. What would be the expression for the firm's marginal costs? O O O O MC = w + 1/ MC = 6r + 8w MC = W MC 6w+8r W MC = 8 +! 6 + 3r 6w+8r = Q (²= ² + ² )
Suppose that a firm produces 200,000 units a year and sells them all for $20 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of: Select one: O A. $2,200,000 B. $2,500,000 O c. $3,700,000 O D. $4,000,000
QUESTION 1 Consider the following cost function (with input prices taken as constants): c(y) =y. What is MC(y)? Oa. y313 O b.y? C. O d. 2y QUESTION 2 Consider the following cost function (with input prices taken as constants): c(y) = y. What is AC(y)? Oa. 3y2 Ob.y Oc. 2y3 Od.y313
K Suppose that a firm's production function is q=5x in the short run, where there are fixed costs of $1,000, and x is the variable input whose cost is $625 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing ya level of output q is A. C(q)= 1,000. OB. OC. OD. OE C(q)= 1,000+ C(q)= 1,000+ C(q) = 1,000+ 625q² C(q)= 25 q² 25 625q² 25 0.5 q B Dollars per unit of output 2000- 1800- 1600- 1400- 1200- 1000- 800- 600 400- 200- a 12 14 10 Quantity nchack 18 (1) Incorrect