1. What is the economic breakeven level of production? p.Calculate the ice cream producer's monthly orofits at full capacity. What would happen to tl nonthly profits if another ice cream producer entered the
Q: The following table presents the expected costs, revenue, and profit schedules for the Tucker Tomato…
A: A firm in the market aims to maximize its profits. It earns maximum profit or minimum loss at the…
Q: Table 22-2 Use the table of expected cost and revenue data for the Tuckers Tomato Farm below to…
A: In perfectly competitive market, firms are price takers so price is constant. Price is equal to…
Q: Refer to the data. 1- What is the Creamy Crisp's explicit costs are? 2- What is the Creamy Crisp's…
A: The firm produces various goods and services and involves various types of costs. The costs would…
Q: jangetau ag a yod uoucoe pue agsod ag a yaud Bugunasse agsodas DA No, economic profit and accounting…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Q3. Complete the following cost table given below and additionally state all the formulae used:…
A: TC is the total expenditure incurred in the production of total output. TC is the sum of fixed and…
Q: 6. Ball Bearings Inc. faces costs of production as follows: Quantity 10 1 2 Total Fixed Costs $100…
A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.…
Q: An economist left her $100,000-a-year teachingposition to work full-time in her own…
A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…
Q: New investors are not attracted to an industry and current ones are not exiting the industry if…
A: Profit is the amount of money earned by a company after deducting all expenses. The primary goal of…
Q: 1. Given the following information: Total Product (TP) 0 1 2 3 4 5 6 Price Fixed Cost (TFC) $6000…
A:
Q: 5) If AVC = 20 & ATC = 25, then what is AFC? %3D %3D 6) If a firm produces 100 uunits of output and…
A: Fixed cost is independent of output produced.
Q: nhing at 3%. GIven these conditions, select the choice below that best describes the current…
A: Given economic growth -1% Unemployment rate - 5% Inflation - 3%
Q: Interpret in below diagram and determine at what point the short rus firm will shut down their…
A: When a firm enters and make production to sell the output in the market, it has the primary aim to…
Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…
A: The accounting profit is the difference between the revenue and the cost. The economic profit would…
Q: QUESTION 4 47 Dave's perfectly competitive coffee-producing factory is making positive economic…
A: In the perfectly Competitive market, a firm will be able to earn economic profit when its average…
Q: What is the expected profit if Yaster Inc. produces and sells 22,798 thingamabobs? $ Round to the…
A: A company's total revenue is the sum of the money it brings in through the sale of its products and…
Q: Optimisation of one-variate function 2. The company's profit function is n= 140Q 202-70 2.1 What is…
A: Given Profit function π=140Q-2Q2-70 ....(1)
Q: derivative of the firm's profit function is F′(x) = −0.03x2 + 3x - 100, where x ≥ 0 is the output…
A: Profit is the difference between Total cost a nd total revenue . And in this case the marginal…
Q: Graph the ATC and MC below and explain
A: The marginal cost (MC) represents the additional costs incurred in producing one extra unit of the…
Q: -ney (even if he/she doesn't have much money) this is known as the ect. 1) Snob 2) Hilfigger 3)…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: Define the term Return on total assets?
A: Return on Total Assets is a ratio that computes the earnings before tax and interest of a company in…
Q: Microsoft P=$83.80 Earning per share (EPS)= $4.05 Price earring ratio (P/E) = ? Rate of return =…
A: Companies use various measures to analyze the profitability of various projects. Earnings per share,…
Q: Focus on, how did Diminishing Returns create a problem for MCD's drive-through order takers? How did…
A: Here, VC variable cost MC marginal cost FC fixed cost TC total cost ATC average total cost AVC…
Q: help with below homework. Mimi's is developing a Fiery Habanero muffin, which will NOT compete with…
A: *Answer:
Q: Selling Price (5) Break-even Volume (x) Total Variable Cost at Break- Re Variable Cost (VC) even…
A: *Answer: Fixed cost (FC) per month Variable Cost (VC) per unit Selling Price (S) per unit…
Q: 11. Madibaz is a company that produces t-shirts. The firm operates in a highly competitive, industry…
A: here we calculate the Madlibaz total profit by using the given information which are as follow-
Q: 16. Only one of these companies is affected by law of diminishing returns. Identify the company and…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: a farmer in Georgia begins to grow peaches. He uses $1.000.000 in savings to purchase land. he rents…
A: Both Economic profit and Accounting ptofit solved below,
Q: WHat happens when a company does not follow economic heory and charges prices below the marginal…
A: Marginal revenue: It is the revenue that is being generated when an additional unit of output is…
Q: small coffee house has the following costs: building and pizza oven rentals 100,000 labor…
A: A) Accounting profit computed as Total revenue - Total => 4,20,000 - 455000 Accounting profit…
Q: 4. Given the information that follows: Sales - 750,000, explicit costs 450,000, return you could…
A: Given information:- Sales = $ 750 000 Explicit cost = $ 450 000…
Q: 9. For the cost function CiO) = 100 - 20 -302 the marginal cost of producing 2 units of outout is b.…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Output TFC TVC TC MC ATC A 25 25 ------ ------ B 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4…
A: The marginal cost is the cost of producing an additional one unit of output. It is calculated by…
Q: Q TR TC MR MC S0 $10 1 $20 $15 $20 $5 $40 $25 $20 $10 3 $60 $40 $20 $15 4 $80 $60 $20 $20 5. $100…
A: The producer will produce in order to maximise its profits. No producer will limit this goal. And…
Q: Define the term Unit-Profit?
A: The profit that is earned per unit of the output is known as Unit-Profit. Clearly, the profit that a…
Q: Barrels of Average Oil Marginal Marginal Total Produced Revenue Cost Costs $ 50.00 $ 50.00 $ 50.00 $…
A: After considering the above table , We can find the Total Fixed cost as follows:
Q: Price, marginal cost (5) The diagram illustrates isoprofit curves and the marg diagram? 10.000 9.000…
A: if MQ motor sells 35 cars it will be at price $6000 and the point [35,6000] lies above the iso…
Q: 1. Below is an annual income statement of Julian's Online Clothing Store. Julian is already working…
A: As per guidelines, we will answer the first question with three subpart question.
Q: economic profit is smaller than accounting profit because of implicit cost---- a) none of the above…
A: Implicit costs are the ones that are not shown separately even though they have occurred already.…
Q: Economic profits differ from accounting profits because O a all of the mentioned Ob. the former is…
A: Economic and accounting profits differ due to the concept of accrual of cost.
Q: 1. Shelby is an entrepreneur who has decided to open a small advertising firm. She rents office…
A: Given: Rental space=$25000 Salary=$30000 Annual utility= $20000 Alternative of salary…
Q: b. The following are costs and revenues incurred by an ice cream company in short-run production.…
A: The markets are the place where the buyers of the goods, and services tend to interact and meet with…
Q: A firm in a purely competitve industry has a typical cost structure. The normal rate of profit in…
A: (a) Rate of return is calculated as follows. Rate of return is 10%.
Q: a. If the firm is currently producing 7 units, should the fırm increase or decrease production? b.…
A: A perfectly competitive firm maximizes profit at level of output where P = MR = MC or MR > MC. At…
Q: d. At what volumes do breakeven occur? e. What is the company's range of profitable demand?
A: Please find the answer below.
Q: omic e likely to be t's financial difficulties. ms associated with each of ats could do to address…
A: A business is a firm or an inventive body that engages in commercial, industrial, or professional…
Q: a. Refer to Table calculate explicit costs for this firm? b. Refer to Table calculate implicit costs…
A: a. Explicit costs are resulted from the production process or these are direct costs of the…
Q: Karen runs a print shop that makes posters for large companies. It is a very competitive business.…
A: A perfectly competitive market is one that has a large number of firms, selling homogenous products.…
Q: HW#4 (Costs of Production, Competitive Markets) Back to Assignment Attempts: Keep the Highest: /5…
A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-part question. . If…
Step by step
Solved in 2 steps
- Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
- How does fixed cost affect marginal cost? Why is this relationship important?An ice cream producer has fixed costs of $70,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs $10 in the market whilethe producer faces variable costs of $3 per tub.a. What is the economic breakeven level of production?b . Calculate the ice cream producer’s monthly profits at full capacity. What would happen to the monthly profits if another ice cream producer entered themarket, driving the price of ice cream tubs down to $7 per unit?Under which of the folowing examples is t likaly that the accounting profit is positive and the economic profit is negative? OA Using a restaurant you purchased to sell Menican food instead of talian food. OR It you use a diamond mine as a touriet atraction instead of using it for mining. Oc Opering a bank branch near a university campus. OD. Such a scenario, where accounting cost is positive and economic profit is negafive, is not possibie.
- A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.1. A firm has three different production facilities, all of which produce the same product. Whilereviewing the firm’s cost data, Ron, a manager, discovered that one of the plants has a higher averagecost than the other plans and suggests closing this plant. Another manager, Jack, notes that the high-cost plant has high fixed costs but that the marginal cost in this plant is lower than in the other plants.He says that the high-cost plant should not be shut down but should expand its operations. Who isright? 2. Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 6400 a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?
- Isit possible for accounting profit to be positive and economic profit to be negative? OA Na, economic profit and accounting profit will always end up being the same. OB. No, economic profit must always be larger than accounting profit. OC Yes, this could ocour if axplicit costs were modest and implict costs were high. OD. Yos, this could occur if impiot costs were modest and explict costs were high.Draw the marginal-cost and average-total-cost curvesfor a typical firm. Explain why the curves have theshapes that they do and why they intersect wherethey do.In 2012, Barrick Gold’s two most productive mines were Cortez and Goldstrike in Nevada, USA. Table 4.5 reports their financial performance. The “average cash cost” includes operating cost, royalties, and taxes, while the “average cost” includes the cash cost as well as amortization.a. Suppose that each mine produces at the rate where the (upward-sloping) marginal cost equals the price of gold. Illustrate the shifts in Goldstrike’s marginal cost curve, selling price, and production between 2010 and 2012. (Hints: The marginal cost curve changes over time. You have only one data point on each curve. Assume any other data necessary to draw the figures.)b. Use the 2012 data to compare the (i) short-run break-even conditions for Cortez and Goldstrike; and (ii) the long-run break-even conditions for the two mines.c. If the price of gold falls to $600 per ounce, how should Barrick adjust production at the two mines?