Why do we refer to the long-run average cost curve as a "boundary"? a. The points below the curve represent cost levels that are unattainable given current technology and factor prices. b. The points above the curve represent cost levels attainable to the firm only with adjustment of all factor prices. c.

Q: 1. Explain the difference between an implicit cost and an explicit cost, and how both costs relate…

A: 1.  Implicit cost is the cost that has already occurred in the past. However, these are not direct…

Q: 2. You are the manager of production at a firm that sells high performance road bikes. Your firm has…

A: Answer: Quantity Average cost (AC) Total cost= AC*Quantity Marginal cost 548 bikes $245…

Q: he marginal cost of driving a mile is $0.33. (Round your response to two decimal places) an deciding…

A: The answer is as follows:-

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A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: 4) Which of the following cost curves is upward sloping at any output level? Average fixed cost…

A: The cost curve refers to the graph of the costs of production as a function of the total quantity…

Q: Use the cost table below to find the following marginal costs. Output quantity 20 40 60 80 100 120…

A: The marginal cost is the change in total production cost that comes from making or producing one…

Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily…

A: Fixed Cost remains constant at all the units of output produced. Variable cost varies with the…

Q: Long-run average cost (AC) of operation may decrease for three reasons. a. List and explain the…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first 3 subparts for you. If…

Q: a) True or False? Short-run average total cost curves have an "U the law of diminishing marginal…

A: The Law of Diminishing Marginal Returns posits that as one input is increased while others are held…

Q: 3. Which of the following types of cost is directly dependent on a firm's output rate? a. fixed cost…

A: Total cost is the sum of fixed cost and variable cost.  Fixed cost are the cost that are fixed and…

Q: 3. Average Fixed Cost is the a. horizontal distance (at any particular cost level) between ATC and…

A: A company's total cost is divided into fixed and variable costs. A "fixed cost" remains constant…

Q: Mad Mildred's Magic Mall by determining the Labor (workers/day) Output (units/day) 0 1 2 3 4 5 0 8…

A: Help mad Mildred magic mall by determining the missing values in the table.

Q: Cost, Revenue & Profit For these problems, xx will represent the number of items and yy will…

A: Slope intercept form: Y=AX + B

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: As per the question, the short run is the period where the firm would not be able to adjust with…

Q: 1. Minimize short (K fixed atK ) and long run cost of the following production technologies: a. q =…

A: A production function is a indispensable thought in economics that describes the relationship…

Q: See the cost information in the table below. The marginal cost of the 6th unit is Quantity…

A: The marginal cost of a good refers to the increment in the total cost when an additional unit of a…

Q: 1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.…

A: TVC = TC - TFC = 4,000 - 2,000 = $2,000

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: able 11-6 Quantity of workers Quantity of foot massages per day Fixed cost Variable cost Total…

A: We have per day fixed cost of message booth..

Q: What is the formula to calculate profits?

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Night Shades. Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14…

A: Variable cost in economics means to expenses that vary with changes in the level of production or…

Q: Q1. We classify Three Possible Long-Run Average Cost Curves for a Multiplant Firm; given the…

A: Here, given three graphs shows the difference nature of the long-run average cost curve of a firm.

Q: The table below shows the monthly cost of producing vintage model cars for cc Instructions: Enter…

A: Total cost is the cost incurred by the producer for producing all the goods. The obtain total cost,…

Q: Finley's orchard incurs $90,000 per year in fixed costs. Last year, their total production was 100…

A: Fixed cost is the cost that remains same at all levels of output. Average Fixed cost is the Fixed…

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A: Economies of scale and diseconomies of scale are important concepts in economics. Economies of scale…

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: Suppose a firm’s cost function is given by C(q) = 20 + 10q − 4q^2 + q^3 (a) What is fixed cost? (b)…

A: Given information: We have given the cost function.  i.e., C=20 + 10q - 4q2 + q3 The cost function…

Q: Problem 4. The marginal cost C" for a product as a function of the number of units produced q is…

A: Fixed Cost = 5000MC is depicted in graph below ,

Q: Which of the following statements is (are) correct? (x)  In the short run, if a firm produces…

A: Fixed cost is the cost incurred by the producer for the purchase of fixed inputs. These costs do not…

Q: Answer the following Questions. Include referencing where additional sources have been used a. Why…

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

Q: Suppose a firm's total variable costs are given by TVC = 2.q° , and it has a fixed cost of 580 of…

A: In economics, the marginal cost (MC) or low cost is a change in the total value that results when…

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

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A: We can re-create the table correctly as follows.

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A: Fixed cost: Fixed costs are the expenses incurred by the firm that do not change if the level of…

Q: Which of the following best defines a sunk cost?   A. Costs that have already been incurred and…

A: The question focuses on identifying the most accurate definition of a sunk cost. Sunk costs are a…

Q: shows the long-run average costs for Inmode, a manufacturer of Internet modems. Quantity per Day…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: • point of diminishing returns (D) most productive point (P) economic capacity (E) Once a point is…

A: No of Workers TP 1 10 2 80 3 180 4 240 5 280 6 294 Variable Cost = 220 per day Fixed…

Q: Which of the following would be categorized as an implicit cost? a. not being able to spend your…

A: The implicit cost is the cost that already occurred but is not recorded in the business.  It is the…

Q: Refer to Table 13-1. What is the average total cost of producing one widget? b. $15 a. S1 c. $16 d.…

A: Formula to be used: For all quantities, the fixed cost remains the same. TC=FC+VC  VC=TC-FC…

Q: Refer to the information provided in Table below to answer the question that follow. Number of…

A: The sum of all the variable costs incurred by a business in the production of goods or services is…

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…

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A: Variable cost is those cost which is not fixed in nature. These costs change in proportion to…

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A: Answer: Correct option: option D Explanation: Diseconomies of scale: when an increase in a firm’s…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.