The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then implicit costs must be a.$50. b.$100. c.$250. d.$350.

The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then implicit costs must be a.$50. b.$100. c.$250. d.$350.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section: Chapter Questions

Problem 4WNG

See similar textbooks

Related questions

Q: Assume the cost of making 30 belts $800 the cost of makin 35 belts $900 and the cost equation is…

A: Marginal cost measures the change in total cost due to a change in quantity produced. Marginal cost…

Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…

A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…

Q: Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: $5,000 per month. Variable cost at the current evel of output of 100 tables per month is $10,0 Which…

A: A variable cost is a corporate expense that changes in proportion to how much a company produces or…

Q: The difference between variable cost and fxed cost is that Select one: a. fixed cost is paid even…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Gooey Bites sells snack packs for $3 per pack. Variable expenses involved in producing snack packs…

A: The total cost function is the aggregate of all fixed and variable costs incurred in the process of…

Q: Exercises 47-50 describe a number of business ventures. For each exercise, a. Write the cost…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: I you know that when a firm produces 10 units of output, total costs are $1,030 and average fixed…

A: Fixed cost is a type of business expense that does not vary with changes in the quantity of goods or…

Q: A. Graph total fixed cost, total variable cost and total cost B. Explain how the law of diminishing…

A: Answer A. TVC + TFC = TC Both TC and TVC run in concurrently. The x-axis of TFC is parallel. At zero…

Q: D. Average Cost (AC) E. Average Variabel Cost (AVC) F. Average Fixed Cost (AFC) Please solve…

Q: Define explicit costs and implicit costs. b. Assume the following: * A firm buys a unit of…

A: Explicit cost is the cost that is incurred for paying external expenses like wages to employees,…

Q: Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent…

A: "Implicit costs refer to the opportunity costs i.e. the cost of resources which the business owns…

Q: The lawn ranger , a landscaping company , has total costs of $5,000 and total fixed cost of $3000…

A: Given information: Total costs = $5000 Total fixed cost = $3000 TC = TFC+TVC 5000 =…

Q: A bakery has an average fixed cost per bun of $1 and average variable cost of $1.60 at current…

A: The short run is the period of time when there are both fixed and variable factors. Variable Cost…

Q: A firm's production is given by q = 5L 3 K 3. (a) Calculate APL and MPL. Determine if the production…

A: The law of diminishing returns refers back to the idea that the greater we make use of something,…

Q: In this table, the fixed cost of production is:

A: Costs of production, which comprise expenses of many kinds, are incurred during the production of…

Q: To make a decision about opening a restaurant, what is the relevant cost for Aram? $50 thousand has…

A: Explicit costs are ordinary business expenses that appear in the general ledger and have a direct…

Q: What is the difference between economic profit and accounting profit? What is a normal rate of…

A: As per honor code, we’ll answer only one question at a time , we have answered the first question…

Q: Bob the Builder is currently producing 20 bookshelves at à total cost of $2,000. His average…

A: The fixed cost is constant regardless of price and quantity e.g. rent. It is also known as indirect…

Q: a. Define explicit costs and implicit costs. b. Assume the following: * A firm buys a unit of…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: MC 90 ATC AVC 70 40 30 50 100 8. The figure above shows a firm's marginal cost, average total cost,…

A: Marginal cost = 70 Average total cost = 70 Average variable cost = 40

Q: A company is planning to manufacture mountain bikes. Fixed monthly cost will be $100,000 and it will…

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The variable cost per…

A: Costs are the expenses that firms incur in the production of goods and services.

Q: (TC is total cost; VC is variable cost; Q is quantity.) ATC а. b. The amount by which total cost…

A: A -Change in TC dur to change in output is called MARGINAL COST B- AMOUNT by which total cost…

Q: Total Revenue function = 164x Total Cost function = 0,01x2+20x+300 x shows unit of production.…

A: Given the values: TR = 164x TC = 0.01x2+20x+300

Q: Joanne sells silk screened T-shirts at community festivals and craft fairs. Her marginal cost to…

A: Break-even point in economics refers to the level of output at which a company's total revenues…

Q: Product Costs Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: The use of fixed cost items to magnify the firm's results Correct! What are some uses for break-even…

A: It helps in forecasting costs and profit as a result of change in volume. It helps to determine the…

Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

Question

		a.$50.
		b.$100.
		c.$250.
		d.$350.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of implicit cost.

VIEW

Solution

VIEW

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

What is a long-run average cost curve?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
To make a decision about opening a restaurant, what is the relevant cost for Aram? $50 thousand has been spent to date on renovating the place. Aram could be earning $ 100 thousand a year as a chef. Additional labor and other costs necessary to open the restaurant equal $ 60 thousand a year. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $ 160 thousand a b. $ 60 thousand $ 210 thousand $ 110 thousand $ 50 million
Chris The use of fixed cost items to magnify the firm's results Correct! What are some uses for break-even analysis? Select all that apply, then click Submit below To see how much the changes in cost affect variable costs. To see how much the changes in volume affect cost and profit. To determine the magnitude of operations necessary to avoid loss. To figure out the most efficient level of fixed costs for the firm. To figure out the most inefficient way to make profit. To figure out the operating leverage. Submit
How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when a firm is considering a longer time horizon?
The Towson Table Company has fixed costs of $5,000 per month. Variable cost at the current level of output of 100 tables per month is $10,000. Which of the following is true for the company? A. Average cost of production is $150. Average cost of production is $100. C. Average fixed cost of production is $150. Average variable cost of production is $150. B. D.
The difference between variable cost and fixed cost is that Select one: a. fixed cost is paid even when there is no output b. fixed cost is always falling as output increases c variable cost only increases for a while and then it decreases d. fixed cost is always less than variable cost e. fixed cost is not paid once production begins
The lawn ranger , a landscaping company , has total costs of $5,000 and total fixed cost of $3000 .The lawn ranger's toal variables cost are a. indeterminate because the firm's output level is not known.b. $3,000.c. $5,000.d. $2,000.
Jskxkkxc
In this table, the fixed cost of production is: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с $8,000. $700. $5,000. d $3,000. Output 0 100 200 300 400 Total Cost $5,000 $5,700 $6,300 $7,100 $8,000 Variable Cost $0 $700 $1,300 $2,100 $3,000
MC 90 ATC AVC 70 40 30 50 100 8. The figure above shows a firm's marginal cost, average total cost, and average variable cost curves. At Q =100, the average fixed cost is: a $30. b. S40. C. $50. d. S60.
D + moodstage.com A bakery has an average fixed cost per bun of $1 and average variable cost of $1.60 at current production levels. Based on this information, the bakery needs to be able to sell each bun AT LEAST S to continue operating in the SHORT RUN. a. $2.60 b. $1.00 c. $1.60 d. $ 0.60