Why does a firm care about economic capacity? O a. Output can't increase O b. Cost are maximized here O c. Point where Taxes are minimized O d. It's where their per unit cost are minimized
Q: Which of the following statements is true as a result of the lump-sum tax? Check all that apply.…
A: Taxation is the process by which a government collects money from individuals, businesses, and other…
Q: a. Why will firms in most markets be located at or close to the bottom of the longrun average cost…
A: A. Why will firms in most markets be located at or close to the bottom of the long-run average cost…
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A: Mainly, there are two types of run in economics. 1. Long run 2. Short run
Q: What is the meaning of minimum efficient scale? a. The minimum plant size where constant returns to…
A: Minimum efficient scale refers to the smallest output that a firm is able to produce when long run…
Q: Why do economists classify normal profits as costs? O A normal profit is the amount required to…
A: Profit is the difference between total revenue and total cost. Profit=TR-TC Normal profit is also…
Q: The figure below depicts the production function of grain for farmers under average growing…
A: In a year of a bad drought, the production curve can turn downward for a large number of farmers.…
Q: Productivity decreases when O a. Output and hours worked decrease at the same rate Ob. Hours worked…
A: Productivity refers to the ability of the business to produce more output. Productivity determines…
Q: The Bluebird Factory reported $1,000,000 in total revenues and $60,000 total variable costs during…
A: Given: The total revenues are = $1,000,000 The total variable costs are = $60,000 To Find: The…
Q: Why would a tirm be happy to cam zero economic protts? Because zero oeonomic profit means that the…
A: Accounting profit = Total revenue – total cost Economic profit = accounting profit –…
Q: 9. An increase in the demand for land will a. increase the price of land and increase the quantity…
A: Dear student, You have asked multiple questions in a single post. I will answer one question for…
Q: A. CI 2,000. 8. Ci-2,000 - 8004 Cig- 2,000 - 1250 14 16 Ci OE Ci-2,000 . Quartty 1250 wite down the…
A: here we calculate the total cost of producing level of output as follow
Q: Figure 4.2 O there is waste. O it is very difficult and very expensive to increase output once the…
A: TC represents "Total Cost." A financial statistic called total cost is used in business and…
Q: hat is the derence betwoen accounting proft and economic profe? DA Economic profit suttracts both…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
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A: Total cost is the sum of fixed cost and variable cost. Fixed cost remains same at all levels of…
Q: at is the rent per acre for land at 2 miles away from CD?
A: Rent for half acre land 3 miles away from CBD = $5000 Therefore Rent on one acre land 3 Miles away…
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A: The total production process of a firm is an amalgamation of various costs, the optimum quantity…
Q: 10. Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether it produces…
A: The average cost of a firm is the sum of average fixed cost and average variable cost. The average…
Q: 1. The transportation cost is $100 per ton per mile. A factory is producing 10 tons of output per…
A: Given the transportation cost = $100 per ton per mileTotal output = 10 tonsRent = $5000Distance = 3…
Q: Many businesses taco increasing marginal costs because___ O A. in order to increase output, you…
A: Marginal cost is the cost of producing an additional unit of output. Average total cost is the…
Q: KK Enterprises' average total cost curve (ATC) has shifted up, but its average variable cost curve…
A: Any change in Fixed Cost does not affect the Variable Cost and Marginal Cost. Therefore, a tax on a…
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A: Automation refers to the use of technology to do some manual activities. It is simply the…
Q: Which action would decrease per unit costs? O a. Decreasing output when experiencing diseconomies of…
A: Economies of scale is when the increase in output decreases the long run average cost.Diseconomies…
Q: COST PER UNIT $ отх Y Z OUTPUT According to the diagram above, output OY represents the firm's:…
A: LRATC stands for Long-Run Average Total Cost. It refers to the average total cost per unit of output…
Q: How does a lump sum tax affect the fixed costs and variable costs of a producer? Select one: O a. A…
A: Variable costs and fixed costs together sum up to obtain total costs.
Q: Generally, economies of scope are present when Lütfen birini seçin. a joint output is greater from a…
A: Economies of scope arises, when total output by a single firm producing multiple goods is greater…
Q: Suppose a fim is producing 400 units of output, incurring a total cost of $650,000 and total fed…
A:
Q: QUESTION Other things equal, if the fixed costs of a firm were to increase by $100,000 per year,…
A: Fixed cost is a cost which remain fixed or unchanged at all the level of output. Fixed cost is…
Q: Suppose initially there are 22 Cournot competitors in a market, each producing an identical good at…
A: Given, Number of Cournot competitors, N = 22 Each produces identical products at the same constant…
Q: What are the firm's fixed costs? $ c. What is the variable cost of producing 475 units of output…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first 3 questions for you.…
Q: Cost Per Year Q₁ Q4 QQQQ Q8 TC VC At what level of output does average total cost equal marginal…
A: The relationship between total cost (TC), average cost (AC), and marginal cost (MC) is fundamental…
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A: In the short run, the optimal production occurs at the following point. MR = Price of input / Price…
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A: The marginal product (MP) refers to a change in output as a result of one extra unit of input being…
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- In Figure 4.2, the reason that point D is higher than point C and C is higher than B is that Total Cost Total Cost Function Output Figure 4.2 Othere is waste. O it is very difficult and very expensive to increase output once the capacity of the machinery has been reached. O it always costs more money to increase output. O small levels of production are often inefficient and that significant increases in production can occur thereafter at only a small additional cost.The Bluebird Factory reported $1,000,000 in total revenues and $60,000 total variable costs during the previous year. Required: Compute the contribution margin. O a. $920,000 O b. $980,000 C. $940,000 d. $960,000 e. $900,0001. The transportation cost is $100 per ton per mile. A factory is producing 10 tons of output per year and pays $5000 for rent for its half-acre plant at 3 miles away from the CBD, where the train station is. ii. If the whole industry faces a boom and the factory is gaining an additional profit of $500, how much can it pay for rent at 3 miles away from CBD? 5500 4500 3500 O 6000
- Cost Per Year O O O 1 At what level of output does average total cost equal marginal cost? ♂ Q4 QQQQ Q8 TC VC FC OutputDo question 4Wlhy would a firm be happy to earm zero economic protits? Recause zero cconomic profit means that the firm earns O enough in total revenues to pay for all the fixed costs and some hut not all of the varlable costs. O enough in total revenues to pay for all the accounting custs but rrone of the opportunity costs. O zero accounting profits. O enough in total revenues to pay for all the laccounting costs and all of the opportunity costs.
- . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From ___ to ____g. Over what range of the variable input usage do decreasing marginal returns exist?From ___ to ___h. Over what range of input usage do negative marginal returns exist?From ___ to ___ . What are the firm's fixed costs?$ c. What is the variable cost of producing 475 units of output (use least-cost)?$ d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?$ f. Over what range of the variable input usage do increasing marginal returns exist?From to g. Over what range of the…QUI The figure below depicts the production function of grain for farmers under average growing conditions with the currently available Noi technology. Mar 9007 PF 800- 700- 600- 500- 400- 300- 200어 100- o Slope 732,000/ 1,600 = 458 04 400 800 1200 1600 2000 2400 2800 Number of farmers Select one or more: In a year with exceptionally good weather conditions, the production function curve will be higher and parallel to the curve O a. above. O b. A discovery of new high yielding crop seeds would tilt the production function curve higher anti-clockwise, pivoted at the origin. O C. In a year of bad drought the production curve can turn downwards for large numbers of farmers. O d. If there is an upper-limit on the amount of grain that can be produced, then the curve will end up horizontal for large number of farmers. S Type here to search 25 hp t4 15 16 eSC 5 6. 7. 00 %24 3. . ........ Kilogrammes of grain produced (thousands)Suppose that a fim's production tuncson is 2000 1800 in the short run, where there are foed conts of s2.000, und xis the variabie irput whow cont $120 per unt 160 140 1400- What the total coet of producing a leel at cusput q? in oher words, idertify the totsl cost function Cigi S 1200 The total coet of produsing a ve of ouput q 1000- OA CI2,000 OB. Ci-2,000- 00 Cig-2,000 OD. 200- 1250 25 10 12 14 16 Quanity OE 1250g Ci-2,000. 25 Wite down the equstion for the upply ourve The supply curve is 200 OA paso. OB P-2,000 - 00e OC. P-2004. OD. P-504. OR P-100 ece If price is S00, how many units wil the fm produce? The fim wil produce unts of ouput (Enter your reeponse rounded to two decimal places) What is the level of prot Proft equals . (Enter your response roundud to hwo decinal places.) Ilustrate your anewer on a cost aurve graphn. 200 12 14 Quantity 1) Using the ine drawing tool, draw the maginal cost curve. Label it MC. 2) Luing the point druning oal, indicate the profi masimizing…
- Suppose a fim is producing 400 units of output, incurring a total cost of $650,000 and total fied cost of $75,000. tcan be conduded that erage veriable cot O A. $1438. OB. $1625. OC. $2000. O D. $188. OE $1813.How does a lump sum tax affect the fixed costs and variable costs of a producer? Select one: a. A lump sum tax does not affect fixed costs but it does increase variable costs. O b. A lump sum tax decreases both fixed costs and variable costs. O c. A lump sum tax increases fixed costs but it does not affect variable costs. O d. A lump sum tax increases both fixed costs and variable costs.Why do economists classify normal profits as costs? O A normal profit is the amount required to ensure continued supply of the product. O Normal profits have elements of revenue and cost. OA normal profit has to be paid to the IRS. Normal profits cannot be counted as revenue.