The table below provides the output level and the longrun total cost in US$ ofMoselewapula Limited, Montsamaisabosigo Limited, and Majakathata Limited:Longrun Total Cost (in US$)Quantity of Moselewapula Montsamaisabosigo MajakathataOutputLimited160Limited11Limited21270243438039494905666сл51007585611096106IN120119129(a) Calculate the average total cost for each firm at each level of output. [✓](b) Draw the longrun average total cost curves for the three firms using excel.(c) Do the three firms exhibit economies of scale or diseconomies of scale? Justify youranswer using data. |(d) Explain any factor that could lead to firms suffering from diseconomies of scale andany factor that could lead firms enjoying economies of scale.

(a) Divide the long-run total cost (LRTC) by the quantity of output (Q) to determine the average…

Answered: The table below provides the output…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q- 200g +q° where Q is measured as thousands of feet of piping. The long-run marginal cost of Peter's pipes is given as LMC = 20,000 - 400q+3q² Divide total cost by q to obtain Peter's long-run average cost of producing pipe.
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Assume the following cost data are for a purely competitive producer Total Product AFC AVC ATC MC 0 1 $60 $45 $105 $45 2 $30 $42.50 $72.50 $40 3 $20 $40 $60 $35 4 $15 $37.50 $52.50 $30 5 $12 $37 $49 $35 6 $10 $37.50 $47.50 $40 7 $8.57 $38.57 $47.14 $45 8 $7.50 $40.63 $48.13 $55 9 $6.67 $43.33 $50 $65 10 $6.00 $46.50 $52.50 $75 In the table below, complete the short run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3) 1 2 3 4 Price Quantity supplied, single firm Profit (+) or loss (-) Quantity supplied, 1500 firms $26 $32 $38 $41 $46 $56 $66
computer system. The last run of the production cost schedule resulted in the incomplete listing shown below (listed as question numbers). From your knowledge of cost theory, solve for the values in the table to the corresponding questions below. During the last few days the Superior Company has been running into problems with its ATC AFC - MC TC TFC TVC 75 75 A 75 100 75 В 1 75 37.5 15 TC total costs, TFC = total fixed costs, TVC = total variable costs, ATC = average total costs, %3D %3D AFC = average fixed costs, AVC = average variable costs, MC = marginal costs What is the correct numerical value for C in the table? 100 37.5 O 57.5 O 20
мса 17 If a firm exhibits X-inefficiency, the implication is that: A unit production costs are higher than the achievable minimum В profits are higher than they are for other firms in the industry C I do not want to answer this question. marginal cost must be rising as the rate of production rises E economies of scale are limited by the size of the market F consumers are prepared to pay more for the substitute goods produced by other competing firms
Answer each of the following as true or false and briefly explain your answer. 9 39 8 1a) If ec> 1, increasing returns to scale and decreasing average costs are indicated 1b) 7 17 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Average cost exceeds marginal cost at the minimum efficient scale of plant. 0 0 1c) DA When total fixed cost and price are held constant, a reduction in average variable cost will typically cause a reduction in the breakeven activity level. 10X00X0 0,0 0,0 0 When long-run average cost is decreasing, it can pay to operate smaller plants at their peak efficiency rather than larger plants with some excess capacity.
Q3 need in 10 minutes
What are the average fixed costs for this firm if they produce 10 units? Write your answer in numeric form, for example: $55
K-Electric's costs of production as follows: Quantity Q3. Total Fixed Costs Total Variable Costs Rs. 0 Rs. Rs.100 Rs.100 Rs. 100 Rs.100 Rs.100 Rs.100 Rs.100 50 Rs. 70 Rs. 90 Rs. 140 Rs. 200 Rs.360 3 4 a). Calculate K-Electric's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production? b) The price of per unit electricity is Rs. 50. Secing the it can't make a profit, the Chief Executive Officer (CEO) decides to SHUT DOWN the operations. What are the firm's profits / losses? Was this a wise decision? Explain.
21
The monthly average variable costs, average total costs, and marginal costs for Alpacky, a typical alpaca wool-manufacturing firm in Peru, are shown in the table below. All firms in the industry share the same costs as Alpacky, and the industry is in long-run equilibrium. Output (units of wool) 0 1 2 3 4 5 AVC ($) 25.00 21.50 19.67 19.25 19.80 ATC ($) 35.00 26.50 23.00 21.75 21.80 MC ($) 25.00 18.00 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: $
Q39

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