Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 8, Problem 8P
To determine
Identify the given points
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QUESTION 15
Imagine a small juice producer named "Bilberry Infused Beverages" known for its refreshing beverages. The
owner, Louis, keeps track of the production costs. Recently he decided to expand his operations and produce
more Juices to meet the increasing demand. Table 15.1 below shows the data he has collected: Complete
Table 15.1 below and use the information to answer the question that follows.
Table 15:1 Production Costs for Bilberry Infused Beverages
(4 Marks)
Output
0
Total cost
30
Fixed cost
Variable
cost
Marginal Average
cost
Average
cost
fixed cost
0
1
10
18
3
22
4
56
5
64
6
B
76
7
8
15
15
What is the marginal cost of producing the 8th unit of the good?
a) 4
b) 10
c) 12
d) 29
QUESTION 15
Imagine a small juice producer named " Bilberry Infused Beverages" known for its refreshing beverages. The
owner, Louis, keeps track of the production costs. Recently he decided to expand his operations and produce
more Juices to meet the increasing demand. Table 15.1 below shows the data he has collected: Complete
Table 15.1 below and use the information to answer the question that follows.
Table 15:1 Production Costs for Bilberry Infused Beverages
(4 Marks)
Output
Total cost Fixed cost
Variable
Marginal Average
cost
cost
cost
Average
fixed cost
0
30
O
1
10
2
18
3
22
4
5
64
B
832
8
76
7
8
15
15
What is the marginal cost of producing the 8th unit of the good?
a) 4
b) 10
c) 12
d) 29
Calculate the total revenue if the firm produces 4 versus 3 units. Then, calculate the marginal revenue of the fourth unit produced.
The marginal revenue of the fourth unit produced is________.
Calculate the total revenue if the firm produces 8 versus 7 units. Then, calculate the marginal revenue of the eighth unit produced.
The marginal revenue of the eighth unit produced is________.
Chapter 8 Solutions
Contemporary Engineering Economics (6th Edition)
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