Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 14, Problem 5IAPA
To determine
Based on the case study, determine the output level where the
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Matt's candle factory rents equipment for making candles and
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Matt pays $140 a day for equipment and $200 a day for each
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Construct Matt's total variable cost and total cost schedules Fill
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GEXER
Labor
(workers
per day)
23WN
4
5
Total
product
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54
71
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Foundations of Economics (8th Edition)
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- How do we calculate each of the following: marginal cost, average total cost, and average variable cost?arrow_forwardA firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?arrow_forwardTotal cost Labor (workers) |Output (frijoles) (dollars) 1,000 1,000 3,000 10 3,000 5,000 15 4,000 7,000 20 4,500 9,000 The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles? ... O A. $2 O B. $9,000 C. $8,000 O D. $225 O E. More information is needed to determine the answer.arrow_forward
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- Average Marginal Quantity Total Cost Total Cost Cost О $10.00 1 15.00 $15.00 $5,00 2 17.50 8.75 2.50 3 22.50 7.50 5.00 4 30.00 7.50 7.50 5 40.00 8.00 10.00 6 52.50 8.75 12.50 7 67.50 9.64 15.00 8 85.00 10.63 17.50 9 105.00 11.67 20.00 Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q), total cost (TC), average total cost (ATC) and marginal cost (MC). Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs is $5.00? Q = 0; profit = -$10.00 O Q = 1; profit = -$10 Q = 3; profit = -$7.50 O Price and profit cannot be determined from the information given.arrow_forward3. Complete the following table for Jan's Bike shop. Labor (workers) Output (bikes) 0 0 1 20 2 50 3 60 4 64 Total fixed Total variable costs (dollars) cost (dollars) 200 100 Total cost (dollars)arrow_forward3. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company’s total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 0 60 — — 1 160 2 220 3 270 4 340 5 450 6 630 On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC…arrow_forward
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