
The market for fertilizer is perfectly competitive. Firms in the market are producing output, but they are currently making economic losses. a. How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal

1. The law of diminishing returns implies that at some output level: a) Marginal cost must fall b) Average total cost must diminish c) profit increases d) Marginal cost must rise e) Total cost must fall 2. The vertical distance between total cost curve and

Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600. a. What is marginal cost? b. What is

Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600. a. What is marginal cost? b. What is

A firm faces the following Average Cost function AC=1500Q^1 + 30027Q+1.5Q^2 Calculate the output level that minimizes: a) Marginal Cost b)Average Variable cost I need some help on this question. Thanks. If the average cost is AC=1500Q^1 + 30027Q+1.5Q^2


10. An industry currently has 100 firms, all of which have fixed cost of $16 and average variable cost as follows: Quantity / Average variable cost: (1/$1),(2,$2), (3,$3), (4,$4), (5,$5), and (6,$6) b. The price is currently $10. What is the total quantity

How is income distribution affected in monopolies? The market for fertilizer is perfectly competitive. Firms in the market are producing output, but they are currently making economic losses. a. How does the price of fertilizer compare to the average total

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000 a. What is marginal cost? b.

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000. a. What is marginal cost?

In the shortrun function of a company with a constant variable cost is given by the equation q=225+55q,where TC is the total cost and q is the total quantity of output,both measured in thousands.1.what is a company's fixed cost?2.if the company produced

Kate’s Katering provides catered meals, and the catered meals industry is perfectly competitive. Kate’s machinery costs $100 per day and is the only fixed input. Her variable cost is comprised of the wages paid to the cooks and the food ingredients.

In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20. Given these facts, explain whether the

The average cost of manufacturing a quantity q of a good, is defined to be a(q) = C(q)/q. The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q >0. I know that the total cost is 0.01q^30.6q^2+13q What is the

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at

A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at


Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is $3,600. a. What is marginal cost? b. What is

A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at

Hi there. You helped me with a couple of questions regarding Econ. I appreciate the help but my issue is I don't understand how you calculate the minimum average variable cost or the output that maximizes profit. I do understand that the price is more than

Output Fixed Cost Variable Cost 1 $5 $10 2 $5 $27 3 $5 $55 4 $5 $91 5 $5 $145 (a) What is the total cost when output is 2? (b) What is the marginal cost of the third unit? (c) How much should this firm produce if the market price is $24?

A firm has fixed costs of $30.00 and variable costs as indicated in the table below. Complete the table. Instructions: Round your answers so that you enter no more than 2 decimal places. Total Product Total Fixed Cost Total Variable Cost Total Cost Average

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at

The average cost of manufacturing a quantity q of a good, is defined to be a(q) = C(q)/q. The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q >0. (a) What is the total cost, C(q),of producing q goods? For this

Yeah, so I'm in urgent need of help with this homework. 1. Assume that in a perfectly competitive market, a firm's costs and revenue are: Marginal cost = average variable cost at $20 Marginal cost = average total cost at $30 Marginal cost = average revenue

You want to determine the profitmaximizing production quantity for a monopolist. You can ask the firm's consultant to draw the firm's revenue and cost curves, but each curve would cost you $1,000. From the following list indicate which curves you will

You want to determine the profitmaximizing production quantity for a monopolist. You can ask the firm's consultant to draw the firm's revenue and cost curves, but each curve would cost you $1,000. From the following list indicate which curves you will


I need help to answer this question? You want to determine the profitmaximizing production quantity for a monopolist. You can ask the firm's consultant to draw the firm's revenue and cost curves, but each curve would cost you $1,000. From the following

Variable cost divided by the change in quantity produced is A. average variable cost. B. marginal cost. C. average total cost. D. None of the above is correct.

An industry currently has 100 firms, all of which have fixed costs of $16 and avg. variable cost as follows: Q Avg. Variable Cost ($) 1 1 2 2 3 3 4 4 5 5 6 6 a. Compute marginal cost and avg. total cost. b. the price is $10. what is the total quantity

For the total variable cost (TVC), draw a positive total fixed cost (TFC) and total cost (TC) curves. Then derive the associated marginal cost (MC), average total cost (ATC), average variable (AVC) and average fixed cost (AFC) curves. Be sure to capture

A company is a monopolist. The demand function for its product is as follows: Q = 60 – 0.4P + 6Y + 2A Where Q = quantity sold in units P = Price per unit Y = per capita disposal income (thousands of dollars) A = hundreds of dollars of advertising

When average total cost is declining then: a) marginal cost must be less than average cost b) marginal cost must be greater than average cost c) average toal cost must be greater than average fixed cost d) average variable cost must be declining. My answer

Posted by eStone on Sunday, March 29, 2009 at 5:47pm. Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed

Teddy Bear, Inc., a rapidly growing manufacturer of high fashion children's shoes, plans to open a new production facility in Gastonia. Based on information provided by the accounting department, the company estimates fixed costs of $250,000 per year. Its

The accompanying table shows a car manufacturer’s total cost of producing cars: Qty TC Variable Costs Avg. Var. Costs Avg. Total Costs Avg. Fixed Costs 0 $500,000        1 540,000  2 560,000  3 570,000  4 590,000  5

5. A firm's marginal cost of production is constant at $5 per unit, and its fixed costs are $20. Draw its total, average variable and average costs. Marginal Cost (MC): $5 per unit Fixed Cost (FC): $20 Total Cost (TC): $25 Average Variable Cost (AVC): $5


. Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm produce to maximize

6. Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm produce to maximize

6. Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm produce to maximize

consider total cost and total revenue given in the table bellow: quantity total cost total revenue 0 $8 0 1 $9 8 2 $10 16 3 $11 24 4 $13 32 5 $19 40 6 $27 48 7 $37 56 a. Calculate profit for each quantity. How much should the firm produce to maximize

a. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output. b. What is the breakeven price? What is the shutdown price? c. Suppose that the price at which Kate can sell catered meals

Consider a firm that has a fixed cost of $60 a minute. output=1, Variable Cost= $10 what is the fixed cost?, Total Cost? Marginal cost?, AFC?, AVC? and ATC? Output is 2? Can't quite figue it out... thanks

The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm’s output is $25. The cost of other variable inputs is $400,000 per day. Assume that total fixed cost equals

A monopolist faces an upwardsloping marginal cost curve. Its profitmaximizing quantity will be a. at the minimum point of the marginal cost curve b. less than the (total) revenuemaximizing quantity c. equal to the (total) revenuemaximizing quantity d.

Suppose you are the manager of a small chemical company operating in a competitive market. Your cost of production can be expressed as C = 100 + Q2, where Q is the level of output and C is total cost. a. Is this a shortrun cost function? b. What is the

A firm currently uses 40,000 workers to produce 180,000 units per day. The daily wage per worker is $100, and the price of the firm’s output is $28. The cost other variable input is $500,000 per day. (Note assume that output is constant at the level of


suppose that the short run costs for a paintbrush manufacturer are given by the expression: TC= 100+2Q+.01 Q2 A. WAT ARE THE FIXED COSTS OF THIS MANUFACTURE? B. WHAT ARE THE TOTAL COSTS , AVERAGE COST, AVERAGE VARIABLE COST AND MARGINAL COST AT 50 AND 100

This is for a test that I'm studying for in Economics. I never did understand this stuff. Here's what I have to figure out. I've never been good at Economics, but I'm trying to get this stuff down for my final. Any help would be appreciated. Thanks in

4. The following is a cost function for clinic visits in a small inner city clinic. Quantity of Visits Total Costs per Week Marginal cost 0 $10 0 1 15 5 2 25 10 3 45 20 4 75 30 5 115 40 6 165 50 a. Determine the marginal cost for each level of output b. If

The economist for the Grand Corporation has estimated the company’s cost function, using the times series data to be TC=50+16Q2Q2+0.2Q3 a. Plot this curve for quanties 1 to 10 b. Calculate the average total cost, average variable cost and marginal cost

If Average Variable Cost AVC = 10 + Q and P = 50. Find: Total Cost TC, Total Fixed Cost TFC, Total Variable Cost TVC, Average Total Cost ATC, Average Fixed Cost AFC

The economist for the Grand Corporation has estimated the company’s cost function, using the times series data to be TC=50+16Q2Q2+0.2Q3 a. Plot this curve for quanties 1 to 10 b. Calculate the average total cost, average variable cost and marginal cost

The demand for item A is P=40 3.5Q The production of A entails the following average variable costs: AVC=1.5Q  35 Fixed Costs are 24. a) Calculate the revenue maximizing price of A Revenue= PQ Revenue= 40Q3.5Q^2 Revenue' = 407Q Q=40/7 P=403.5(40/7)

1. Your roommate's long hours in chem lab finally paid offshe discovered a secret formula that lets people do an hour's worth of studying in 5 minutes. So far, she's sold 200 doses and faces the following averagetotalcost schedule: Q = 199 & ATC = $199

At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296. For the activity level of 8,900 units, compute the following values. Required: A. The total variable cost B. The total cost C.

break even analysis. suppose a certain product sells for a dollars per unit. then the revenue from selling x units of the product is ax dollars if the cost of producting each unit of the product is b dollars and the company has overhead cost of c dollars


i can not figure this out the economist for the grand corporation has estimated the company's cost function, using time series data, to be TC=50+16Q2Q2+0.2Q3 a.plot this curve for quantites 1 to 10 b.calculate the average total cost,average variable cost,

TC=50+16 Q 2 Q2+0.2 Q3 a.plot this curve for quantites 1 to 10 b.calculate the average total cost,average variable cost, and marginal cost for these quantities, and plot them on another graph c. discuss your results in term of decreasing,constant, and

I did mean Q Suppose you are the manager of a small chemical company operating in a competitive market. Your cost of production can be expressed as C = 100 + Q2, where Q is the level of output and C is total cost. a. Is this a shortrun cost function? b.

The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is $6.20, it cost $6.20 to increase productionn from 49 to 50 units of output. Suppose

83. Minimizing Marginal Cost The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is $6.20, it cost $6.20 to increase production from 49 to

A company produces x units of output at a total cost of 1/3 x^3 – 18x^2 + 160x. Output at which average cost is equal to marginal cost is:

Central Crude Oil is a crude oil monopoly in a market. The following table shows the liner demand schedule of this firm which cannot apply price discrimination. The firm's fixed cost is $2000 per month and its marginal cost is a constant of $20 per

# You produce shoes. Currently you produce 4 pairs of shoes at a total cost of %40. a)what is your average total cost (ATC) b)Suppose you could produce one more( fifth)pair at a marginal cost of $20. If you do produce that fifth pair of shoe, what will

6) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about: A. 0.0 B. 0.4 C. 0.6 D. 2.5 7) When labor is the variable input, the average

Imagine that the efficient provision of telephone calls in a mediumsized city involves an initial investment of $100 million financed by borrowing at 6 percent and variable cost of 5 cents a phone call. The phone company's annual fixed cost would be $6.0


Suppose the cost C(q) (in dollars) of producing a quantity q of a product equals C(q) = 500 + 2q +1/5q^2 The marginal cost M(q) equals the instantaneous rate of change of the total cost. Find the marginal cost when a quantity of 10 items are being

Suppose the cost C(q) (in dollars) of producing a quantity q of a product equals C(q) = 500 + 2q +1/5q^2 The marginal cost M(q) equals the instantaneous rate of change of the total cost. Find the marginal cost when a quantity of 10 items are being

Suppose the cost C(q) (in dollars) of producing a quantity q of a product equals C(q) = 500 + 2q +1/5q2. The marginal cost MC(q) equals the instantaneous rate of change of the total cost. Find the marginal cost when a quantity of 10 items are being

Average cost = q^2¡V15q + 48 Calculate the output level (q), which minimizes a)Total Cost b)Marginal Cost I got an answer for a) is q=8 and b) is q=5 I need somebody to check it for me, thanks so much.

When we are given an expression for the Short Run Total Cost Curve (for eg: 8 + 3Q  1.5Q^2 + 0.25Q^3), how do you derive expressions for the following: 1. Average Fixed Costs 2. Average Viarable Costs Curve 3. Marginal Costs Curve 4. Short Run Supply

The total cost C(x) of a firm is C(x) = 0.0005x^3 – 0.7x^2 – 30x + 3,000, where x is the output. The value of x; for which MVC = AVC is: (where VC denotes the variable cost, MVC denotes marginal variable cost and AVC denotes average variable cost

Suppose Honda's total cost of producing 4 cars is $225,000 and its total cost of producing 5 cars is $250,000 a)What is the average total cost of producing 5 cars b)What is the marginal cost of the fifth car? c)Draw the marginal cost curve and the average

A profitmaximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit? b. what is the marginal cost? c. what is its average

I am on the chapter for monoplies. I need to calculate the total cost for the following question. I am not quite clear if I am to use the $2 million that was paid to author to write the book to calculate the total cost, since the question is stating that

As a general rule, profitmaximizing producers in a competitive maket produce output at a point where: A) Marginal cost is increasing B) Marginal cost is decreasing C) marginal revenue is increasing D) Price is less then marginal revenue I picked C? The


(1):Given the cost function c(x)=10+2x and the revenue functio r(x)=3x,find break even quantity and the price (2):if the marginal cost of producing x unit is given by c'(x)=0.4x^3+2x and the fixed cost is p4000.00 find the cost function c(x) and cost

The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s short run cost function for vacuum cleaners using an average variable cost function of the form AVC = a + bQ + cQ2 where AVC dollars per vacuum cleaner and Q

1. Complete Table1 (Joseph Farms, Inc., Cost and Revenue Data), either as a Microsoft Excel spreadsheet, or as a Microsoft Word table. Assume that the price is $165 and the fixed costs are $125, at an output level of 1. Also assume that the data

A monopoly firm is faced with the following demand function P = 26 – 0.5Q. The Marginal Cost function for the firm is given by 6 + 6Q and the total fixed cost is 4. Determine a) The profit maximizing output. b) The level of supernormal profit if any. c)

Suppose the total cost, C(q), of producing a quantity q of a product is given by the equation C(q) = 5000 + 5q The average cost per unit quantity, A(q), equals the total cost, C(q), divided by the quantity produced, q. Find the limiting value of the

Demand function P=50Q Average Cost 5Q + 40 +10/Q Calculate the firm's total cost function Find the marginal cost function and evaluate it at Q=2 and Q=3 What is the total revenue function Find the firms's revenue maximising output level Find the firm's

You’ve been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm’s

Bubba's Burgers sells hamburgers in a perfectly competitive market at a price of $1.50 each. At the profitmaximizing (costminimizing) level of output, average total cost is $1.90 per hamburger and average variable cost is $1.75 per hamburger. Should the

Answer: profit= price  total cost P = price ( GIVEN IN THE QUESTION ) Total cost = (Average cost) * Quantity ( Because AC = TC/Q ) TC= Q^3  8Q^2 + 36Q + 3 TC is also equal to Q * P Therefore Q *( P ) = Q^3  8Q^2 + 36Q +3 now you can solve ( if necessary

A company manufactirung snowboards has fixed costs of $200 per day and total cost of $3800 per day at a daily output of 20 boards. (A( Assuming that the total cost per day, C(x), is linearly related to the taotal out per dau,x, write an equation for the


True or False? Explain your reasoning. a. The shortrun average total cost can never be less than the longrun average total cost. b. The shortrun average variable cost can never be less than the longrun average total cost. c. In the long run, choosing a

Lentz's Incorporated sells paper in a perfectly competitive market at a price of $2 per ream. At the profitmaximizing (costminimizing) level of output, average total cost is $2.50 per ream and average variable cost is $1.95 per ream. Should the firm

1. prove mathematically that MC does not depend on TFC 2. if the average cost of producing 8 units of output in $80 and that of prodcuing 9 units of output is $90, find the marginal cost of the 9th unit of output and the total cost of the last unit

31. If an increase in the price of a good leads to an increase in total revenue, then _____. (Points: 3) the supply curve must be price inelastic the demand curve must be price inelastic I CHOSE THIS ONE the supply curve is price elastic none of the above

Okay, this is due Tuesday. I'm woking on it but if anyone can help that would be great! Suppose firm A opeates in a perfectly competitive market. The price that currently prevails in the market is $1,000. Firm A's marginal cost is 20Q, where Q is output.

CompStrat Corporation’s total cost function (where TC is total cost in dollars, and Q is quantity) is TC = 200 + 10Q + 2Q2 If the firm is a price taker and if the price of its product is $20, what is its optimal output?

# 1 Takers,Inc.provide the following results: 2004 2003 Units 2,400 3,000 Total Cost 19,200 24,000 What form of cost behavior is the cost above? Fixed cost, Sunk Cost, Mixed Cost or Variable Cost

Please check my answers if they are correct! If not, please make corrections. Thank you! Bob, owner of Bob’s Auto, sells cars. The number of car sales is represented by y. Bob buys autos at a price of A each and has no other costs. He only buys as many

The total cost, c, in dollars of operating a factory that produces kitchen utensils is C(x)=0.5x^2+40x+8000, where x is the number of items produced in thousands. a)Determine the marginal cost of producing 5000itmes and compare this with the actual cost of

John is considering adding balloons to the product line he sells at the shop. There will be a cost of $200.00 for leasing the necessary equipment. The cost of buying balloons and helium and paying a worker is expected to be $4.25 per unit (balloon). He


If the price of variable input increases, then: A. The total cost curve will shift up. B. The average total cost curve will shift up. C. The marginal cost curve will shift up. D. All of the above

A company is producing 100 units. At this quanity, it's average total cost is $25, and it's total fixed cost is $2,000. How much is it's total variable cost?

HELP!!!!! One and only Inc is a monopolist. The demand function for its product is estimated to be Q=600.4P +6Y+2A Y=3,000 P=Price per Unit Y=Per capita disposable personal income (thousands of dollars) A=hundreds of dollars of advertising expenses The

The shortrun cost curve for each firm's long run equilibrium output is C=y^220y+400. Calculate the shortrun average and marginal cost curves. At what output level does shortrun average cost reach a minimum? I already know the MC and the SRA is TC/Q. I

I'm not sure how to create a breakeven graph with this information. Unit sales price  $120 Unit variable price  $75 Fixed cost  $4500 I figured out that it would breakeven at $100 television sets, but I'm not sure how to create the graph. Could someone