(Use for Questions 1 - 3): The Burr Corporation's total cost function isTC 2004Q+2Q2МС - 4+40АС %3 200/Q + 4 +2Qwhere TC is the total cost in dollars, Q is quantity, MC is marginal cost per additional unit, AC is average cost per unit and P is product priceWhich rule should Burr Corp use to select a level of output that will maximize profit?а.*AC P-МC%3D0с.MC ACd.:МС - Р

The correct alternative for the aforementioned question is C.

Answered: (Use for Questions 1 - 3): The Burr…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following data describe the firm's monthly demand and monthly costs for a manufacturer of electronic components. 1. Complete the following cost and revenue schedules for this company. Total Average Marginal Marginal Cost per Variable Variable Average Price per Cost per Total Cost Revenue per Cost for Quantity of boxes of per box of box of 1000 units Total box of 1000 box of units Fixed Total box of Revenue units 1000 units 1000 units produced Cost Cost 1000 units 1000 units $0 $800 $800 $1,700 $1,575 $1,450 $1,325 1 $1,028 $1,074 $1,117 $1,184 $1,303 2 3 4 5 $1,200 6. $1,075 $950 $1,498 7 $1,753 8 $825 $2,103 (a) What is the profit maximizing (or loss minimizing) quantity of boxesthat this company should supply? Why? (b) What price will the company charge? How is this price determined? Will this result in economic profits? (c) If the company charged a higher price than what you found in (b) above, what would happen? (d) What market structure do you think this company participates…
1 Mario owns a wood-fired pizza shop which imitates traditional Italian methods. She uses a unique sauce that attracts a loyal following of customers. The demand for her pizzas is q = 1650 – 250p, and her costs are TC 0.72+0.0035q. q is the number of pizzas sold per week, TC(q) is Maria's weekly total cost, and p is the price of a pizza. a) What price and output will Maria choose to maximize profits? b) Maria returns to college and asks her cousin Victor to manage her pizza business. Victor faces the same demand and cost conditions as Maria, but he decides to maximize revenue. What price and output should he choose?
Suppose that firm 1 is a restaurant, whose costs are ingredients, staff and space. Ingredients and staff are paid for weekly and staff can be hired or fired at will. The rental for the space is a one year lease, to move out of this space and into a smaller or larger one would take at least one year. Firm 2 is a door-to-door sales firm where the costs are inventory and staff. Both are paid every two weeks, and staff can be fired or fired at will (but must be paid for the current two weeks) while inventory can be bought or sold within a week. Is one month within the “short run” for firm 1? Is one month within the “short run” for firm 2? Explain your answer.
The graph below characterizes the cost structure for a firm in a perfectly competitive market. Calculate the firm's short-run profit. (Note: this graph and the next one is a bit harder than the one you'll have on the exam, which will be more like the one's we had in class and on the Homework. If you can figure out this one, then you'll do great on the easier graphs!) $25 -1500 -1500 1750 O-1750 DA S 2 $40 $35 $25 $23 100 175 250 MC ATC e AVC P-D-MR-AR
Please give me correct answers and draw carefully Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. Also assume that total labor costs to the firm are $45,000 annually. Assume further that the total capital stock of the firm is currently worth $100,000, that the return available to investors with comparable risks is 10 percent annually, and that there is no depreciation. Calculate the economic profit and accounting profit of this firm? Explain your answer.?
3. Definition of economic costs Jacques lives in San Francisco and runs a business that sells guitars. In an average year, he receives $711,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $411,000; he also pays wages and utility bills totaling $279,000. He owns his showroom; if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as a financial advisor and receive an annual salary of $31,000 with no additional monetary costs. No other costs are incurred in running this guitar business. Identify each of Jacques's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The wholesale cost for the guitars that Jacques pays the manufacturer The wages and utility bills that Jacques pays The rental income Jacques could…

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