The following graphs depict the costs and expenses in the short run and the long run for Edison's Pizza Place. Edison must pay $190 per month to rentpizza ovens (including sales tax) and $21 per hour for his workers. He also pays an additional $1,800 a month for a license that allows him to sell beerat his pizza parlour.DOLLARSMCShort RunACShort-Run CurveMarginal costAverage costAverage expendituresOUTPUT?DOLLARSFill in the following table with information on how each curve is affected, if at all.Long-Run CurveMarginal costAverage variable costAverage costEffectMCLong RunNow, suppose the sales tax on oven rentals is increased, so the monthly price of ovens increases to $225 per month...ACAVCOUTPUTEffect

Rental rate of Oven=190 per month Labor charge =21 per hour License charge=1800 per month New rent…

The following graphs depict the costs and expenses in the short run and the long run for Edison's Pizza Place. Ed pizza ovens (including sales tax) and $21 per hour for his workers. He also pays an additional $1,800 a month fo at his pizza parlour. DOLLARS Short Run ( MC AC OUTPUT DOLLARS Fill in the following table with information on how each curve is affected, if at all. Short-Run Curve Long-Run Curve Marginal cost Marginal cost Average cost Average variable cost Average cost Average expenditures Effect Long Run Now, suppose the sales tax on oven rentals is increased, so the monthly price of ovens increases to $225 per me AVC OUTPUT Effect

The following graphs depict the costs and expenses in the short run and the long run for Edison's Pizza Place. Ed pizza ovens (including sales tax) and $21 per hour for his workers. He also pays an additional $1,800 a month fo at his pizza parlour. DOLLARS Short Run ( MC AC OUTPUT DOLLARS Fill in the following table with information on how each curve is affected, if at all. Short-Run Curve Long-Run Curve Marginal cost Marginal cost Average cost Average variable cost Average cost Average expenditures Effect Long Run Now, suppose the sales tax on oven rentals is increased, so the monthly price of ovens increases to $225 per me AVC OUTPUT Effect

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

5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Qequals the total quantity of bikes produced by all factories.) Number of Factories Q = 50 1 180 2 270 3 360 AVERAGE TOTAL COST (Dollars per bike) 400 360 320 280 240 Suppose Ike's Bikes is currently producing 50 bikes per month in its only factory. Its short-run average total cost is 200 per bike. Suppose Ike's Bikes is expecting to produce 50 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using 160 On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table. Specifically, use the green points…
Please help me to answer Q8
4. Sherry runs a dog grooming business. She has rent of $5,000 per month and must have an assistant to work with her to keep things going. The assistant costs $3,500 per month and supplies cost $1,500 per month. Sherry also has a storage unit where she keeps equipment that she might need at a cost of $1,000 per month. What should Sherry do under the following scenarios? Be sure to show your calculations. a. Sherry has monthly revenue of $8,000 b. Sherry has monthly revenue of $5,000 c. Sherry decides to shut down d. Of the alternatives presented above, which one presents the best outcome? Explain.
please give me correct answer with full explanation and drawing correctly otherwise give downvote
4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 50 45 45 O O 40 35 35 30 PRICE (Dollars per overalls) 20 15 10 5 + 0 0 2 ATC AVC MC 46 8 10 12 14 16 18 20 20 QUANTITY (Thousands of overallses per day) Profit or Loss ?
Table 7 Jimmy's Gigaplots Factory Quantity of gigaplots 1 ~ 3 2 4 5 679 BAC Select one: Fixed Cost O a. $22.17 O b. $22.57 O c. $16.34 O d. $22.00 aguila Variable Cost $13 $28 $64 $108 $133 Total Cost $38 $70 $110 $185 Average Average Fixed Variable Cost Cost Refer to Table 7. What is the average total cost of producing 6 gigaplots at Jimmy's Gigaplot factory? Average Total Margina Cost Cost
m 2 - Chapters 7-10 OPEN The table below shows cost data for producing different amounts of sofas. Use the given information to find the missing cost data. Quantity O 1 2 3 4 10 Total Cost in $ 60 75 104 281 DE G Average Fixed Cost in $ Average Variable Cost in $ a hp 30 IC 12 A 15 11.5 14.0000000000007 24 Marginal Cost in $ 52 125 15 I am finished 4:00 PM 74°F ^ ® # 10₁ 10/30/2022 A
QUESTION 6 At a total cost of $3,100, a company can produce 4 scooters. It has fixed costs of $1,000. If it produces 5 scooters, the costs of production total $3,800. Which of the following statements is true? O Variable costs of producing 4 scooters total $3096. O The average (or per unit) cost of producing 5 scooters is $800 per scooter The total cost curve for this firm is downward sloping Fixed costs will be higher when it produces 5 scooters The marginal cost of producing the fifth scooter is $700
Question When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them? Graphical representation of the short-run total cost curve showing total cost, fixed cost, variable cost: and The marginal cost and average total cost:
!
7. A firm can build a plant of three different sizes. The short-run average total cost curves of each size plant are as follows: Plant A Plant B Plant C Output Average Total Cost Output Average Total Cost Output Average Total Cost 1 20 20 30 20 50 5 18 40 20 50 20 10 15 60 10 400 3 20 20 80 20 600 8 25 40 100 50 800 20 What is the long-run average cost of producing 20 units of output? Why?