**Table Cost.EX2: Costs and Outputs for a Competitive Firm**| Output (Q) | Total Fixed Costs (TFC) | Total Variable Costs (TVC) ||------------|-------------------------|----------------------------|| 0 | $40.00 | $0.00 || 2 | $40.00 | $40.00 || 4 | $40.00 | $90.00 || 6 | $40.00 | $130.00 || 8 | $40.00 | $190.00 || 10 | $40.00 | $260.00 |Refer to Table Cost.EX2. For 8 units, the average total cost is about _______.- ○ $23.75- ○ $26.75- ○ $30.00- ○ $28.75**Explanation:**In this exercise, a table displays how costs vary with output for a competitive firm. Fixed costs remain constant at $40.00 across all output levels, while variable costs increase as output increases. This exercise asks for the average total cost when the output is 8 units, offering multiple-choice options for the correct amount. The average total cost is calculated by summing total fixed and variable costs and dividing by the output quantity.

Answer: Introduction, Average total cost (ATC) average total cost refers to the per-unit total cost…

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 2 $40.00 $40.00 4 $40.00 $90.00 6. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 O $28.75

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 2 $40.00 $40.00 4 $40.00 $90.00 6. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 O $28.75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The food service company running a dining hall provides cafeteria and catering services to a firm and many other institutions. Explain how this company achieves economies of scale and economies of scope
I'm stuck on this one. Whats the correct response?
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs $30.00 $0.00 1. $30.00 $70.00 $30.00 $120.00 3 $30.00 $150.00 4. $30.00 $220.00 $30.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No answer text provided. O No answer text provided. S62.50 S60.00
Complete the following table of short-run fixed costs. (Enter your responses rounded to two decimal places.) Total Fixed Cost (TFC) $1,500 Output (9) 1 2 3 4 5 1,500 1,500 1,500 1,500 Average Fixed Costs (AFC) $
The monthly average variable costs, average total costs, and marginal costs for Alpacky, a typical alpaca wool-manufacturing firm in Peru, are shown in the table below. All firms in the industry share the same costs as Alpacky, and the industry is in long-run equilibrium Output (units of wool) 0 1 2 3 4 5 AVC ($) 20.00 17.00 16.67 17.00 18.00 ATC (5) 30.00 22.00 20.00 19.50 20.00 MC ($) 20.00 14.00 16.00 18.00 22.00 Instructions: Round your answer to two decimal places. Given that the market is in long-run equilibrium, the market price is: $
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 1 $40.00 $40.00 $40.00 $90.00 $40.00 $130.00 4 $40.00 $190.00 5 $40.00 $260.00 Refer to Table Cost.EX2. At 3 units of output, average variable cost and average total cost are and respectively. $47.50; $70.00 O $47.50; $56.67 $43.33; $70.00 $43.33; $56.67
$ per unit $40 $20 2 4 6 8 10 MC 12 ATC MR AVC Output (q) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.)
5. A toy factory has an annual demand for 20,000 of tops. It cost $1.50 to store one top per year. It costs $500 for each production set-up for these tops and $3.50 to manufacture a single top. Find the total cost function. fM Total Cost of Production is: T(g) = : + gM +, where q is number of units per productionm run; k is cost of storing 2 one item per year; g is cost of manufacturing a single unit of the product; f is fixed set-up cost for a production run; M is total demand of units per year. Given Constants Total Cost Function Find the optimum number of tops per batch as well as the number of batches per year. optimum number of tops optimum number of batches Find the total cost for this optimum production schedule. Optimum Total Cost
Tåble Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs 0. $50.00 $0.00 1 $50.00 $70.00 $50.00 $120.00 $50.00 $150.00 4 $50.00 $220.00 $50.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is'about O $66.67 $68.67 No answer text provided. O No answer text provided.
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…
Question 7 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80? $12.50 $1,000 $11.25 O $10.83 20
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 3. $30.00 $40.00 6. $30.00 $90.00 9. $30.00 $130.00 12 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $20.00 O $16.67 O $5.00 $15.00