You are one of 5 identical firms (i. e., you all have the same costs) that sell widgets. Each day you have afixed cost of $9 to operate. The marginal cost of your first widget is $1; second is $2; third $3; fourth $7;and for the fifth it is $8. You have a capacity constraint of 5, and you can only produce a whole numberof widgets. Part 2 The AVC for a firm that produces 2 widgets is $ enter your response here. (Roundyour answer to 2 decimal places as needed)

The Average Variable Cost (AVC) for a firm that produces 2 widgets is $1.50Explanation:To calculate…

Answered: You are one of 5 identical firms (i.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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construct two graphs lined up one on top of the other. The upper graph should reflect a total cost curve and the bottom graph should reflect the average cost curve and the marginal cost curve
Your niece is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand. If your niece decides to open the lemonade stand, how much profit will she earn? Show how you arrived at this number. Should she open the lemonade stand? What kind of cost is the $10 spent on the lemonade stand sign?
Suppose that the fish processor could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the boat tour would no longer be affected. If the fish processor uses the recycling method, then the fish processor's economic profit is $1,300 per week, and the boat tour's economic profit is $1,900 per week. If the fish processor does not use the recycling method, then the fish processor's economic profit is $1,600 per week, and the boat tour's economic profit is $1,100 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish processor's economic profit and the boat tour's economic profit combined) with and without recycling. Action Profit Fish Processor Boat Tour Total (Dollars) (Dollars) (Dollars) No Recycling 1,600 1,100 Recycling 1,300 1,900 Total economic profit is highest…
Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q^2. a. What are the firm's fixed costs? b. What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10 c. How much should this firm charge for the product? d. What is the optimal level of output to maximize profits? e. How much profit will be earned? f. In the long run, should this firm continue to operate or shut down? Why? *Please show all work*
You plan to open your own hamburger shop. After doing some research and planning, you have created the table below to help estimate how much to charge for your hamburger to make a profit. You already identified various quantities of hamburgers you could potentially produce as well as the related variable and fixed costs. Review the information already provided in the Hamburger Shop Information Costs table, then calculate and enter the remaining information. # of Hamburgers Variable Costs Fixed Costs Total Costs Average Total Cost Average Variable Cost Marginal Cost 1,000 $500 $5,000 $5,500 2,500 $1,000 $5,000 $6,000 4,000 $1,400 $5,000 $6,400 9,000 $2,400 $5,000 $7,400 13,000 $3,400 $5,000 $8,400 20,000 $10,000 $5,000 $15,000 45,000 $31,250 $5,000 $36,250
Hi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly Elastic
Refer to the table below. Quantity Cost (in dollars) Fixed Costs (in dollars) Total Costs (in dollars) Average Total Costs (in dollars per unit) Average Variable Costs (in dollars per unit) Marginal Costs (in dollars per unit) 0 0 40 40 - - - - - - 1 15 40 55 55 15 15 2 35 40 75 37.5 17.5 20 3 60 40 100 33.3 20 25 4 90 40 130 32.5 22.5 30 5 125 40 165 33 25 35 6 160 40 200 33.3 26.6 40 If this information were used to create a total cost graph, the curve should Question 6 options: begin at 40 on the vertical axis and slope upward. become steeper as quantity increases. become steeper due to diminishing returns. reflect all of the above.
“A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?
Scenario 15-2 The information below applies to a competitive firm that sells its output for $40 per unit. When the firm produces and sells 140 units of output, its average total cost is $24.5. When the firm produces and sells 141 units of output, its average total cost is $24.60. Refer to Scenario 15-2. Suppose the firm is producing 140 units of output and its fixed cost is $975. Then its variable cost amounts to O a. $9,360.25. O b. $2,455.00. O c. $3,430.00. O d. $7,500.00.
A manufacturer of fine pens produces in two plants. The total cost of producing in the first plant is given by TC1 = yi + 100. The total cost of producing in the second plant is given by TC2 + 200. 3 In these cost functions, y1 corresponds to the number of pens produced in the first plant, and y2 corresponds to the number of pens produced in the second plant. Suppose the firm's marginal cost is $256. If the firm is minimizing costs, the firm must be producing pens.
Given the following table: OUTPUT TOTAL COST 0 1 2 3 4 5 6 SAENASS 59 67 74 80 87 95 Part 1: The TVC of producing 4 units of output is Number Part 2: The AFC of producing 6 units of output is: Number Part 3: The marginal cost of producing the fifth unit of output is: Number Part 4: The ATC of producing 5 units of output is: Number
Jeb owns a small marketing company, which he operates from a home office. Jeb’s home office is an example of which of the following? Fixed cost Marginal cost Implicit cost Explicit cost

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