Suppose it costs $3.50 to produce a prerecorded cassette with the overhead of $10,000, which sells for $6.00 with no middleman. How many cassettes must be sold to break even and interpret the result?

Q: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: Consider the data in the table which applies to the provision of psychological testing services.…

A: Variable Cost is the cost which depends on the amount of output. It changes with the change in the…

Q: Please provide an example of sunk costs in bakery business and explain why they are sunk costs.

A: Money that is already spent, and cannot be recovered, is called sunk cost. There is popular saying…

Q: The 50th worker produces fewer additional units of output than the 49th worker does.’ Based on the…

A: The Marginal cost is the change in total cost when one additional unit of input is used. The average…

Q: The first two units of a product cost a total of $9,000 to produce. If you believe an 80 percent…

A: Production cost = Original Cost * learning rate ^log 2 n.....(equation 1) The given learning rate is…

Q: A firm pays $500,000 per year on costs that it cannot alter in the short run. This year, it expects…

A: Cost Cost refers to any expense that incur in the process of production. Total cost is made up of…

Q: Fixed costs differ from sunk costs in that a firm can avoid fixed costs by not producing anything

A: Avoidable costs are costs that do not occur if the activity is not performed. For example, supply…

Q: Luis has a factory that produces construction tools in CDMX. Knowing that your marginal cost…

A: The firm produces output in the form of the various goods and services which has various costs…

Q: Q 1. The hiring of labour with fixed factor of production under short run after sometimes leads to…

A: 1) The law of variable proportion states that when total output of a good is increased by adding…

Q: If Boeing produces 9 jets per month, its long-run total cost is $9.0 million per month. If it…

A: Economics of scale: It refers to the situation when increasing production leads to falling per unit…

Q: The absolute value of the slope of a firm's isocost line is equal to the ratio of...

A: Isocost line is the line which shows different combinations of labor and capital, or any other two…

Q: A common name for fixed cost is “overhead.” If you divide fixed cost by the quantity of output…

A: The average fixed costs AFC curve is downward sloping because fixed costs are distributed over a…

Q: The following is cost information for the Creamy Crisp Donut Company Entrepreneur's potential…

A: Explicit Costs or the Accounting Costs refer to the actual monetary payments made during course of…

Q: The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is…

A: Total Cost is the sum of fixed cost and variable cost. TC=FC+VC Fixed cost is that cost which is…

Q: Distinguish between the short-run and long-run production decisions and illustrate their impact on…

A: Meaning of Production Function: The term production function refers to the situation under when a…

Q: Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50.…

A: Total cost of production is the sum of total fixed cost and total variable cost. Total fixed cost is…

Q: Marginal Cost (dollars) Units of Variable Total Cost Output Cost (dollars) (dollars) 0. 60 45 105 45…

A: Total cost is the sum of fixed cost and variable cost.

Q: The feature that distinguishes short-run from the long-run is the *       length of time it takes to…

A: Short run and long run are period of times in production of goods which differ according to the…

Q: Table 8.5 Output Total Cost 0 15 1 25 2 33 3 40 4 48 5 58 6 70 Refer to Table 8.5. The marginal…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: The first two units of a product cost a total of $9,000 to produce. If you believe an 80 percent…

A: Learning curve is 80%. First two units cost is $9,000. The fourth unit cost can be calculated by…

Q: Which of the following statements about cost drivers in ABC systems is FALSE? 1 cost driver for a…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A weaver working with a handloom is able to produce 11 yards of fabric per day. The typical weaver…

A: Per day production by handloom = 11 yards Per day payment to worker =$10 Per day production by…

Q: Which would be an implicit cost for a firm?  The cost        of worker wages and salaries for the…

A: In economics, there are two types of cost, the one is explicit cost and other is implicit cost.…

Q: The publisher of a new book figures fixed costs at $92,000 and variable costs at $2.10 for each book…

A: At the breakeven level of production, the firm will be exactly covering its total cost with the…

Q: "A Ford car contains about five thousand parts-that is counting screws, nuts, and al. Some of the…

A: Supply for a good refers to the number of units of the good that a producer is willing and able to…

Q: A toll road commission is planning to locate garages for tow trucks along a 94-mile circular…

A: Given: Overall circumference (P) = 94 Cost of transportation (t) = 47 Fixed cost (F) = 4500…

Q: The data in the table is for a firm in which labour is the only. variable cost and each unit of…

A: Formulas used : TP = AP × Q  MP = TPn - TP n-1  AVC = TVC / Q MC = TC n - TC n-1  Also this is given…

Q: Question 3. Refer to the information provided in the following figure, If this firm's cost of…

A: Isocost line represents the different combinations of factors of production a firm can afford to…

Q: A business owner makes 1,000 items a day. Each day she contributes eight hours to produce those…

A: The cost incurred by the businessman is $ 150,000 and she produces 1000 items in a day for 30 days…

Q: Please fill out the missing figures        Output Total Cost (TC) Total Fixed Costs (TFC) Total…

A: Total fixed cost is the cost that remains the same with the change in the level of output produced.…

Q: If accounting profit is $400,000 greater than economic profit, what do implicit cost equal?

A: We know that: Accounting profit = Total revenue- Total explicit cost Economic profit = Total revenue…

Q: Quest manufacturing incurs the following costs per unit: labor $100/unit, materials $50/unit, and…

A: Total cost is the sum of fixed cost and variable cost.

Q: Suppose a hugely successful Web company has used freeconomics, expanded its scale of operations, and…

A: Economies of scale refer to the cost advantages secured by a firm in a market as it expands its…

Q: Rafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business…

A: Explicit cost: It is the actual monetary expenditure required to run a business.  Implicit cost: It…

Q: which requires labor hours along with time on two machines. Producing a unit of trash cans requires…

A:

Q: Variable costs are         sunk costs.        costs that change every day.        costs that change…

A: Total Cost refers to all expenses involved in producing a good or providing a service.  It has two…

Q: A firm has two plants that produce identical output. The cost functions are C1=346q−8q2+0.5q3 and…

A: Firm's objective is to maximize the profit or minimise the cost .  Here the production Decision is…

Q: Total cost of the firm rely fully on the total fixed cost of the firm. True/False

A: Costs are the expenses that a firm incurs in the production of the goods and services. It is…

Q: Q.1.16 The vertical distance between the average total cost curve and the average variable cost…

A: Note: As per the guidelines, we are supposed to answer only one question when multiple questions are…

Q: Marginal cost _1. The additional cost from an additional unit of output produced. Production…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain graphically cost behaviour in a fixed size plant?

A: Fixed cost refers to the cost that the firm needs to bear always that does not change with the…