O O 971 5:39Total CostOutput(Units)($)50101202017030210402605033060430Total costs include a "normal" return on the time (labor services) and capital that the ownerhas invested in the firm. The prevailing market price is $7 per unit.(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.(b) What is the firm's profit maximizing output level?Is the industry in long-run equilibrium? Justify your answer.

MC = Change in TC / Change in Q ATC = TC / Q Q TC Change in TC Change in Q MC ATC 0 50…

Total Cost Output (Units) ($) 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the own has invested in the firm. The prevailing market price is $7 per unit. 키) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.

Total Cost Output (Units) ($) 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the own has invested in the firm. The prevailing market price is $7 per unit. 키) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.

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 next 2 questions refer to the following total cost schedule for a competitive firm: Output Total Cost 012345 $15 100 145 205 290 410 If market price is $100, the maximum profit the firm can earn is $ If market price is $60, the firm will produce units of output.
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) $
Problem 05-06 A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, average variable cost, and marginal cost at all relevant levels of output. Instruction: Enter your responses for Average Fixed Cost (AFC) and Average Variable Cost (AVC) rounded to two decimal places. All other responses should be entered as whole numbers. If you are entering a negative number, use a negative sign (-) where appropriate. Q AVC ATC MC 150 300 75 200 H50 175 225 30 325 25 400 FC VC TC AFC 0 $ 15,000 0 100 15000 200 15000 300 15000 400 15000 500 15000 600 15000
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
The Finger Lakes region in New York State produces wine. The climate favors white wines, but reds have been produced successfully in the past 15 years. Categorize the following costs incurred by one winery as either fixed or variable. Are the wages paid to the same workers who pick the grapes at the end of August or early September a variable or fixed cost?
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…
a) Calculate the marginal product (MP1) for the mixers. Does the production function have increasing, decreasing, constant marginal product for the mixers? b) Suppose in the short run the amount of machines she has is fixed at 27. How many mixers should she use? How many baklavas will she produce? How much profit will she make? c)Usinag an isoprofit, as well as the production function, draw a diagram of your soltuion from part (b). carefully label all the slopes and intercepts. d) In the long run, how many mixers should she use? How many machines? How many baklavas will she make? e) Suppose that the government decides to provide a $1 subsidy per mixer. What is the profit-maximizing amount of input to use now?
Q3 need in 10 minutes
21