22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost
Q: Quantity Average Fixed Cost Average Total Cost 1 140 2 75 3 60 4 55 5 54 6 20 60 Short run…
A: Diminishing returns to production starts where marginal cost increases with an increase in output,…
Q: a. Complete the following table and answer two questions about costs. Instructions: Enter your…
A: Here we calculate the following terms by using the given information , so the calculation of the…
Q: How does the impact of fixed costs change production decisions in the short run and in the long run?
A: A fixed cost(FC) is an expense that doesn't change with an expansion or reduction in the measure of…
Q: What is the relationship between the firm,total revenue,total profit and total cos
A: Costs are the expenses that the firms have to incur in their production activities. Revenue is the…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: Answer: LRATC (long-run average total cost)=Long-run average total cost is obtained by taking the…
Q: Question 2 A. List and explain which of the following is a fixed cost or a variable cost for…
A: The cost of fuel used in its planes Variable cost The rent on its piarco headquarters Fixed cost The…
Q: Q1 It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold…
A: According to guidelines, first 3 subparts needs to be solved. Profit maximisation is done by…
Q: 3. Calculate TC, AFC, AVC, ATC and MC. Fixed Variable Costs Average Average Average Marginal Units…
A: 3) The formulas below would be required for the values in the table. TC= FC+ VC Total cost is the…
Q: Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the…
A: Formulas to be used:TC = VC+FCATC = TC/QAVC = TVC/QAFC = TFC/OMC = TCn - TCn-1
Q: a) Fill in the table above b) Does this firm operate in short run or long run? Explain why? c)…
A: 1) TCn = TCn-1 + MCn 2) MCn = TCn -TCn-1 3) TC = TFC + TVC 4) AFC = TFC / NUMBER OF UNITS 5) ATC =…
Q: 3. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Figure 7-4 Quantity of Output Total Fixed Cost Total Variable Cost $25 $25 $25 $25 $25 $10 $15 $25…
A: TC(total cost) is calculated as the sum of TFC(total fixed cost) and TVC(total variable cost), where…
Q: Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: Economies of scale refers to the gradual decline in the average cost with increase in the scale of…
Q: When are you are you expecting companies to produce in the short run? A. costs equal equal revenue…
A: A firm tends to earn positive profits when its earned revenues can cover its total costs.
Q: Betty's Bakery Quantity of cakes 1 2 3 4 5 6 7 8 Fixed Cost Variable Cost $13 $28 $64 $108 $133…
A: Marginal cost refers to the increase or decrease in the cost of producing one more unit or serving…
Q: DEFINE AND EXPLAIN PRODUCTION IN SHORT RUN
A: In the production process, different inputs are used to produce the final output. Each input has its…
Q: what is meant by the term Cost of production? Distinguish between fixed and variable cost. Why short…
A: One of the important motives for the firms operating in a market is profit. Profit is the difference…
Q: (d) Evaluate the following statement. "I used my own money, my own land and my own equipment to…
A: The opportunity cost of a particular activity option in microeconomic theory is the loss of value or…
Q: 5. The average fixed cost curve and the average variable cost curve have two different shapes. With…
A: Average fixed costs curve appears like an oblong hyperbola. it's defined because the ratio of TFC to…
Q: Fertilizer Q TFC TVC TC MC ATC AVC AFC TR MR 25 70 1300 100…
A: The formula used to calculate different costs are : TC = TFC + TVCAFC = TFCQAVC = TVCQATC = AFC +…
Q: Quèstion 33 The increase in total cost that results from producing one additional unit of output is…
A: Average Fixed Cost is the total fixed cost per unit of output. Average Variable Cost is the total…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: Short run average total cost is $720 per bike. In the long run, it would like to produce using three…
Q: 9) A chocolate company makes truffles using labor and capital. The company pays the workers $12 per…
A: The problem of reducing costs is, in mathematics, a problem. In limited optimization. The firm wants…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: The average total cost (ATC) measures the total cost incurred by a firm for every output unit it…
Q: A. A firm’s fixed costs for 0 units of output and its average total cost of producing different…
A: A. Fixed costs are those costs which a company has to incur irrespective of any business activity…
Q: 2. Healthy Harry's Juice Bar has the following cost schedule (in tk.): Q(Quantity) Variable Cost…
A: (i) We know that, AVC=VCQATC=TCQMC=∆TC∆Q Now, Quantity VC TC AVC ATC MC 0 0 30 0 - - 1 10 40…
Q: Fill in the table Costs of Production of a Soap Manufacturer Bar of Soap (Quantity) Total Fixed…
A: Total Cost: Total cost is the sum of money spent to produce goods and services. IT refers to the…
Q: 38. Graphically, where is average fixed cost (AFC)? It is below price but above average variable…
A: "Cost refers to the value of money that is spent on production or other economic activities." "Fixed…
Q: .The output at which average product is a maximum is the same output at which is a minimum اختر أحد…
A: Total physical output or total product divided by the quantity of input employed gives the average…
Q: Mention and explain the cost components certainly do not exist in the long run?
A: The cost components include fixed costs and variable costs. Variable costs are the costs which vary…
Q: Give an example of a fixed cost and a variable cost.
A: Variable and Fixed costs in economics are those two types of costs that a firm incurs during the…
Q: D D Question 12 When marginal product is diminishing O average variable cost is falling O fixed cost…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 4. The Wipe Out Ski Company manufactures ski for beginners. Fixed costs are $30. Complete the table…
A: Formula used Total Cost = Total Variable Cost + Total Fixed Cost Average Variable Cost = Total…
Q: Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends 10 hours planting $100 worth…
A: Accounting profit is the difference between total revenues and explicit costs where explicit costs…
Q: 9 Healthy Harry's Juice Bar has the following cost schedules: yC AY Q (vats) Variable Cost Total…
A: a. Table-1 shows the variable cost and total cost schedule.
Q: QUESTION 10 Table 13-5 The Flying Elvis Copter Rides Quantity Total Cost 10 1 $50 $150 G M Fixed…
A:
Q: 1. Factors that increase productivity and explain each
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Quantity otTabor (workers) Total product (lawns mowed per hour) 0. 0. 3 4. 15 22 6. 26 28 table…
A: Marginal productivity of labor measures change in productivity after hiring an additional unit of…
Q: QUESTION 10 Table 13-5 The Flying Elvis Copter Rides Quantity Total Cost $50 $150 G M Fixed Cost 350…
A: The average fixed cost (AFC) is the fixed cost that does not change with the change in the number of…
Q: FC VC TC AFC AVC ATC MC 2. 2 A 3 3 1 2 2 1.8 1 .9 1.9 3 2. 2.4 4.4 .8 1.47 .6 4 2. 2.8 4.8 .5 1.2 .4…
A: Average total cost is the per unit total cost of production. Marginal cost is the additional cost…
Q: 3. Jane's Juice Bar has the following cost schedules: Variable Cost $0 Total Cost Quantity 0 vats of…
A: Given,
Q: 21) In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is…
A: Total variable cost refers to the total cost incurred by the producer in production activity and it…
Q: Quantity Total Cost Marginal Cost Using Total Cost (Dollars) Variable Cost Marginal Cost Using…
A: The firm produces the goods and services with the inputs of production using labor and capital. The…
Q: Instructions: 1. Complete the table making the appropriate calculations. 2. Graph Fixed cost,…
A: fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: 3. Jane's Juice Bar has the following cost schedules: Quantity 0 vats of juice Variable Cost Total…
A: Answer: (a). The following formulas will be used: Average variable cost (AVC)=Total variable…
Q: 3. Given information in the following table: Quantity Price (RM) Total Cost 60 18 58 20 3 54 24 4 48…
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…
Q: When do firms decide to shut down production in the short run? Explain it.
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 8. Which one of the following cost can never become zero? (A) (B) (C) (D) Average cost Fixed cost…
A: Answer according to the given question Option(B) is correct that it is the fixed cost which cannot…
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- How does fixed cost affect marginal cost? Why is this relationship important?27. If a firm will produce an additional unit of good or services, determine what will happen to their costs? a. The total cost will decrease b. The total cost will increase c. The total cost will be the same d. The total cost will be equali. Calculate the marginal cost, marginal revenue and profit for each unitof production. ii. How many units should the firm produce to maximise profit?
- Which of these will have lower values as the quantity produced increases? a. Fixed cost per unit b. Total variable cost c. Fixed cost d. Variable costIf a firm will produce an additional unit of good or services, determine what will happen to their costs? a. The total cost will decrease O b. The total cost will be the same O . The total cost will be equal O d. The total cost will increasec. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the firm?
- If the marginal cost is above the average cost at a certain level of production and the firmdecides to increase output, then:a. The average cost will increase but the marginal cost will decrease.b. Both the average and the marginal cost will increase.c. The average cost will increase but the average cost will decrease.d. Both the average and the marginal cost will decrease.Designated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable cost d. average cost26. Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing? a. Mid-run b. Long run c. All of these d. Short - run
- A firm is producing 20 units with an averagetotal cost of $25 and a marginal cost of $15. Ifit increases production to 21 units, which of thefollowing must occur?a. Marginal cost will decrease.b. Marginal cost will increase.c. Average total cost will decrease.d. Average total cost will increase.What is the law of diminishing returns? Why does marginal product eventuallydiminish?b. Explain the relationship between marginal product and average product. Lin’s makes fortune cookies. Anyone can make and sell fortune cookies, so thereare dozens of producers. All fortune cookies are the same and buyers and sellersknow this fact. In what type of market does Lin’s operate? What determines theprice of fortune cookies? What determines Lin’s marginal revenue?d. What is the shape of the AFC curve and why does it have this shape?2- Use the information in the graph to find the values for the following costs at an output level of 500. ATC 15 s00 Ilaits l'aty D. Total fixed cost E. Total variable cost F. Total cost G. Marginal cost. Cust r ait (S)
