The following graph shows per unit costs - marginal costs, average total costs, and average variable costs for a firm. Based on this graph answer the following questions. For questions that need calculations please show all formulas and your calculations. A. What is ATC when the firm produces 10 units? B. What is TC when the firm produces 10 units? C. What is VC when the firm produces 10 units?
Q: 7. With the information provided, determine the unemployment rate for each of these hypothetical…
A: To determine the unemployment rate for each of the hypothetical economies, we can use the following…
Q: The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In…
A: The following estimates have been obtained for the market demand for cereal In Q= 9.01- 0.68 In…
Q: Consider the following diagram showing two supply curves, S₁ with more pollution and S₂ with less…
A: A supply curve depicts the positive relationship between price and quantity supplied, keeping other…
Q: Economists who advocate a macroeconomic policy of laissez-faire: Select an answer and submit. For…
A: Macroeconomics is a branch of economics that focuses on the study of the overall economic…
Q: Price, cost, revi $80 $70 $60 $50 MR 0 7000 21000 Dresses per year Refer to the graph shown. The…
A: A monopolistically competitive firm is a type of business entity that operates within the framework…
Q: Suppose we have a monocentric city, but strict laws govern both living space and building heights.…
A: Note: Since you have posted a question with multiple sub parts, we will provide the solution only to…
Q: Suppose that the production function in the Ramsey model is Y = AK" L-a. Determine the steady-state…
A: An economic framework called the Ramsey model is used to examine long-term economic growth in…
Q: A country is producing and consuming cell phones and clothes. Initially they are producing 50 cell…
A: To illustrate a country's production possibilities, use a production possibilities frontier (PPF)…
Q: The following is the macro model of the economy for next year. (i) Find the parametric solutions for…
A: To find the parametric solutions for the predicted G.D.P (Y) and predicted net exports (X), we'll…
Q: The following table lists the name, gender, height, and minimum wage 10 people are willing to accept…
A: NameGenderHeight(inches)Minimum wage(Dollars per…
Q: Consider the following demand and supply functions: Qd= 100 - 5P and Qs = 4 + 3P. Graph the supply…
A: Supply refers to the quantity of a good or service that producers are willing and able to offer in…
Q: Suppose the market for wooden picnic benches experiences the following event: The price of plastic…
A: When the price of a substitute good decreases, the demand for the original good decreases. This is…
Q: An increase in interest rates shifts the Investment Demand curve up and increases Business…
A: Aggregate expenditure(AE) is the summation of all the expenditure undertaken by all the economic…
Q: Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or…
A: An oligopoly is a market structure in economics characterized by a small number of large firms or…
Q: Because of a chronic water shortage in California, new athletic fields must use artificial turf or…
A: Cash Flow PeriodIf a person gets a certain amount of cash, he must disburse that amount after a…
Q: George has a fixed income and can afford at most 7 units of X if he spends his entire income on X.…
A: Indifference curve is the summation of two goods or commodities that provides equal utility to an…
Q: According to the private parties can solve the problem of externalities if they can bargain without…
A: The Coase theorem states that private parties can solve the problem of externalities if they can…
Q: Suppose a bank offers you the following two year, non-cashable GICs (i.e., withdrawals are not…
A: Guaranteed Investment Certificates:These are financial products offered by banks and credit unions,…
Q: How much money will be required four years from today to repay a $2000 loan that is made today (a)…
A: Simple interest is a method of calculating interest on a loan or investment based only on the…
Q: Gross Domestic Product is caiculated by multiplying the quantities of goods by their prices because…
A: The total monetary value of all final products produced within a specific time frame, typically a…
Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…
A: Since you have posted a question with primary subparts that have multiple subparts in it, according…
Q: Use the following graph to answer the next three questions. Price Supply B C E A D Demand Quantity…
A: Social welfare refers to the well-being or utility for all individuals society arising out of…
Q: Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to…
A: Present worth, often referred to as "present value" in financial and economic contexts, is a…
Q: d. What is one combination that would be considered an unattainable level of production in this…
A: The Production Possibilities Frontier (PPF) illustrates the maximum feasible amount of two goods…
Q: Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant…
A: There are two people; Sardi and Tinaka.Each produces two goods; corn and pork. Sardi can produce…
Q: ADROLL: A CASE STUDY OF ENTREPRENEURIAL GROWTH SUMMARY AND AUTHOR’S NOTE The case examines the…
A: The statement provides an overview of a case study titled "A Case Study of Entrepreneurial Growth"…
Q: . A primary cause of inefficiency in government is that A. Antitrust is applied to government…
A: Concentrated Benefit and Dispersed Costs:Concentrated benefits and dispersed costs refer to a…
Q: 2.6. Class size and student performance. Economic research shows that primary school children in…
A: Correlation and causation are concepts used in statistics and research to describe the relationship…
Q: 13. The variety of supply curves The following graph displays four supply curves (LL, MM, NN, and…
A: Elasticity of supply shows responsiveness of quantity supplied with respect change in price of a…
Q: Suppose the current price of gasoline at the pump is $4 per gallon and that 1 million gallons are…
A: When the tax is implemented in an economy, it generates tax revenue for the government. Tax revenue…
Q: 28 24 20 16 12 8 4 0 0 4 8 12 Show Transcribed Text 16 20 S 24 Assuming a $9 per unit subsidy is…
A: Subsidy is the benefit given to producers or consumers in order to encourage them to increase the…
Q: Alagir and Ertil are small countries that protect their economic growth from rapidly advancing…
A: A quota restricts the quantity of goods that can be imported or exported, while a tariff imposes a…
Q: (Figure 4.13) What rotated the budget constraint? Quantity of good Y 10 9 8 7 T 5- 0 1 2 3 4 5 6 7 8…
A: A budget constraint is a fundamental concept in economics that represents the limitations…
Q: With regard to the Great Pacific Garbage Patch, respond to the following: What kinds of market…
A: It can be defined as the situation in the economy where the products and services are not allocated…
Q: In Louisiana, the price of beef recently increased due to the popularity of the Keto diet. Leather…
A: In microeconomics, economic equilibrium may also be described as the price at which supply equals…
Q: 15. Market equilibrium The following table presents the weekly demand and supply in the market for…
A: Quantity demand and Quantity supply are two different parameters from the viewpoint of consumer and…
Q: WORLD VIEW Secondhand Smoke Kills More Than 600,000 People a Year Secondhand smoke globally kills…
A: Global output is the value of all output produced globally in any particular period of time. Global…
Q: Which of the statements below is a positive statement? Group of answer choices PCC should not have…
A: Positive statements are objective statements that describe facts or events without expressing…
Q: In everyday discourse, we sometimes make errors by violating our understanding of elementary logic…
A: A fallacy is a mistaken or misleading belief, argument, or reasoning that is often characterized by…
Q: Figure 13.5 Wage (S) 200 180 160 140 120 100 80- 60 40- 20- 0 Reference: Ref 13-7 MR MC 10 20 30 40…
A: Wages refer to the compensation or payment that individuals receive in exchange for their labor or…
Q: In the market depicted in the graph, what is the deadweight loss, given a price of $12?…
A: Deadweight loss, also known as excess burden or allocative inefficiency, is an economic concept that…
Q: Town of Babylon needs some additional recreation fields. Construction will cost $200,000, and annual…
A: A cash flow diagram, also known as a cash flow chart or cash flow timeline, is a visual…
Q: For a utility function for two goods, U(x,y), to have a strictly diminishing MRS (1.e., to be…
A: We are given that for a utility function to have a strictly diminishing MRS, the following condition…
Q: 3) In the macroeconomic model below, Y is aggregate output, C is aggregate consump- tion, Io is…
A: Given,
Q: 21. Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following…
A: To forecast sales in each of the four quarters, you can use the estimated equation and the values of…
Q: Explain the relationship between the consumer price index and the inflation rate.
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: Question 4 Jesse works as a research assistant and is currently surveying participants in a study.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Charlie consumes apples (A) and bananas (B). His utility function is . The price of apples is…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: Use the graph(s) created in the previous question to contrast the effects and consequences of…
A: ***Since the graph in first part has not been given, so the expert has solved the second and the…
Q: 1. You have borrowed $40,000 at an interest rate of 11%. Equal payments will be made over a…
A: We can use the following formula to calculate the annual payment:Annual payment = [principal * (1 +…
Only typed answer
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 1. A firm has three different production facilities, all of which produce the same product. Whilereviewing the firm’s cost data, Ron, a manager, discovered that one of the plants has a higher averagecost than the other plans and suggests closing this plant. Another manager, Jack, notes that the high-cost plant has high fixed costs but that the marginal cost in this plant is lower than in the other plants.He says that the high-cost plant should not be shut down but should expand its operations. Who isright? 2. Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600 $300601 $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?Consider this statement: “A firm should increaseoutput when it makes a profit.” Do you agree ordisagree? Explain.
- Suppose a firm producing table lamps has the following costs: Quantity Average Total Cost 1,000 $15.00 2,000 9.75 3,000 8.25 4,000 7.50 5,000 7.75 6,000 8.50 7,000 9.75 8,000 10.50 9,000 12.00 Ben and Jerry are managers at the company, and they have this discussion: Ben: We should produce 4,000 lamps per month because that will minimize our average costs. Jerry: But shouldn't we maximize profits rather than minimize costs? To maximize profits, don't we need to take demand into account? Ben: Don't worry. By minimizing average costs, we will be maximizing profits. Demand will determine how high the price we can charge will be, but it won't affect our profit-maximizing quantity. Evaluate the discussion between the two managers. Ben's assertion that the firm should produce the quantity of lamps where average costs are minimized is A. incorrect because profits are instead maximized…Hw#4.pdf Page 2 of 3 Search 4. Bob produces flower pots for sale, which he designs and manufactures using 3-D printing technology. Bob rents a building for $30,000 per month and rents machinery for $20,000 a month. Those are his fixed costs. His variable cost per month is given in the accompanying table. Quantity of flower pots 0 VC $0 1,000 5,000 2,000 8,000 3,000 9,000 4,000 14,000 5,000 20,000 6,000 33,000 7,000 49,000 8,000 72,000 9,000 99,000 10,000 150,000 a) Calculate Bob's average variable cost, average total cost, and marginal cost for each quantity of output. b) There is free entry into the industry, and anyone who enters will face the same costs as Bob. Suppose that currently the price of a flower pot is $25. What will Bob's profit be? Is this a long-run equilibrium? If not, what will the price of a flower pot be in the long run?Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 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 profits?
- Please use the following table to answer the question. Q AVC TVC TFC TC MC 0 - $0 5 $25 10 $15 $150 $150 $300 What is the average variable cost when quantity is equal to five? $5 $25 $125 O $0 $150 - $150 $175 $5The graph below illustrates a series of short-run average cost curves, numbered AC, through AC5, which correspond to five different plant sizes, which are the only sizes possible. AC AC 48 AC AC AC, 24 12 280 560 40 1120 1400 1680 1960 Quantity of output a. What is true about output levels 280, 560, 840, 1,120, and 1,400? (Click to select) b. What is the right size of a plant to produce an output of 700? (Click to select) c. Between what plant sizes does the firm experience economies of scale? (Click to select)Suppose your dad owns a voodworking shop where he makes handmade benches. The following graph shows the marginal cost (MC) and average variable cost (AVC) for your dad's business. 100 90 80 MC 70 60 AVC 50 40 30 20 10 10 20 30 40 50 60 70 80 90 100 OUTPUT (Benohes per month) For each of the prices in the following table, use the graph to determine the number of benches your dad would produce in order to maximize his profit. Also, for each of the prices, indicate whether the firm will produce or shut down (or be indifferent between the two) in the short run. Price Output (Dollars per bench) (Benchs per month) Produce or Shut Down? 32 36 42 55 66 76 COST (D olars per bench)
- You have the following information about long-run total cost for the following firms: Quantity Arnold’s Apples LRATC Belle’s Bananas LRATC Cam’s Cantaloupes LRATC 1 120 33 42 2 140 72 68 3 160 117 98 4 180 168 132 5 200 225 170 6 220 288 212 7 240 357 258 Do any of these firms experience economies of scale? How do you know?QUESTION 17 Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 Quantity1:27 Ces A firm's output, variable costs, and total costs are given in the table below. Instructions: Enter your answers as a whole number. a. Calculate marginal cost using the formula given in the chapter: ATotal cost/AQuantity. Quantity 10 20 30 50 Quantity 0 10 20 30 40 Variable cost ($) b. Calculate AVariable cost/AQuantity. 50 50 120 200 300 420 Variable cost 50 120 200 300 Total cost ($) 420 100 150 220 300 400 520 Total cost ($) 100 150 220 300 400 520 Marginal cost ($) AVariable cost ($)/ AQuantity