Letters are used to represent the terms used to answer this question: price(P), quantity of output(Q),total cost(TC) and average total cost(ATC). Which of the following equations is equal to a firm's average profit? A. (P −ATC) × Q B. P−ATC C. (P×Q)−TC D. P−TC
Q: The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potentlal…
A: Given:Entrepreneur potential earnings as a salaried worker=$40,000 Annual lease on building=$25,000…
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: Question 4 Charlie Co. sells pastries and its production and cost table is given below. A worker…
A: Marginal Product = Change in Total Product / Change in Labour Marginal Cost = Change in Total Cost /…
Q: Item prices and the amounts used for 1990 and 2020 are below. Use 1990 as the base. Item Price…
A: Index number measures the change in a variable or more variables in a given time period. The index…
Q: A. At XYZ Restaurant, which sells only pepperoni pizza, has the cost profile: (Note that variable…
A: Given; Fixed costs= $5650 Variable costs= $5.56 Price= $10
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: 1. The Abner Corporation, a retail seller of television sets, wants to determine how many television…
A: In Economics, the average variable cost is the variable cost per unit. Average variable cost is…
Q: Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a…
A: Marginal cost is the additional cost incurred in order to produce one additional unit of output.
Q: IIT Ball Bearings Inc. faces costs of production as follows: Quantity Total Fixed Cost Total…
A: (A) Total Cost = Total Fixed Cost + Total Variable Cost Marginal Cost = Change in Total Cost /…
Q: ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total…
A: TC= Total cost FC= fixed cost VC= variable cost ATC= average total cost AFC= Average fixed cost…
Q: 6. In the profit-volume chart next page, EF and GH represent the profit-volume graphs of a single…
A: A profit-volume (PV) chart is a graphic representation which shows the earnings or losses of a…
Q: A house cleaning business operates using a car. All data in $s. Monthly costs of car lease is 345,…
A: Total variable cost is the aggregate amount of all variable costs associated with the cost of goods…
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: 13 Aabir, a milk farmer, earns $300k per month in revenue. His monthly costs include Administrative…
A: In economics, the difference between accounting profit and economic profit if accounting profit does…
Q: QUESTION 20 Solve the problem. 750,000 + 0.55x The average cost per unit, y, of producing x units of…
A: The given average total cost (y) function, y= 750,000+0.55xx The ATC should not exceed $8.05. So,…
Q: (Table) Based on the table, Output is the total cost when producing twenty-one units. Assume TFC =…
A: Total cost is the total economic cost which incurs in the process of production of that good.
Q: Question 1 Refer to the information provided in Table 8.2 below to answer the question(s) that…
A: TVC = TC- TFC TVC = AVC*Q TC = ATC*Q TFC = AFC*Q Quantity TVC MC AVC TFC TC AFC ATC' 0 0…
Q: COSTS OF PRODUCTION FORMULAS Total cost (TC) = total fixed cost (TFC) + total variable cost (TVC)…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: 3. The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs…
A: The break even point (BEP) is the point at which total cost and total revenue are equal.
Q: You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One…
A: a. Given: Price = $2.00 Output = 1250 Pounds TC= $7500 FC= $5625 MC= $2.00 (a) Profit = TR−TC…
Q: Discuss the issue of “achievement of the economy of scale” and how it could help in company’s…
A: Economy of scale increases the profits of company. It is because cost would be lower and revenue…
Q: Table 1: New Generation Company Quantity of commodity A per day Total Variable costs in OMR 60.000…
A: Perfect competition is a market structure, in which a large number of firms produces identical…
Q: A special shoe manufacturer ABC Co. has costs of production as follows and solve all the subparts:…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A firm had sales revenue of $1 million lastyear .Its pent $600,000 on labor,$150,000 on capitaland…
A: The accounting profit refers to the profit which the firm receives after it has done for the…
Q: 8. All-Leather is a tanning company located on Lake Michigan in Chicago. Its total cost function is…
A: A cost function is being used in order to chart how the production expenses would change at…
Q: Question 15 From the Graph Provided Below: Non-Linear Break Even Chart 700000 600000 500000 300000…
A: In the above diagram, the firm will sell at a point when its TR curve (yellow curve) intersects with…
Q: 4. Problems and Applications Q4 Ball Bearings, Inc., faces costs of production as follows:…
A: The following table can be completed and written as follows by using the following formulas:TC = TFC…
Q: (M&M) sell one size of coffee latte. Medro & Mariana put together the weekly breakeven diagram for…
A: The total revenue from the sale of a particular quantity of products or services is referred to as…
Q: The car industry consumes a large portion of the steel market. What kind of cost industry is it? A…
A: In a market, a firm can be increasing, decreasing or constant cost industry, according to change in…
Q: Bakery produces and sells grain bread. Monthly fixed costs are known, costs of raw materials and…
A: Cost is a value of money which is paid in return to the factors of production for utilizing its…
Q: oduced. pany currently produces 1 million tablets and makes a profit of D00, but -f tablets could…
A: * SOLUTION :- From the given information the calculation as follows.
Q: Graph A MC AC м AR = MR E3 Quantity (c) Economic loss Graph B P3 Q3 Unit revenue and cost
A: (Q) Evaluate the long-run sustainability of the above scenario for the firm. explain how graphs A…
Q: ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total…
A: Economic cost: It is the mix of misfortunes of any merchandise that have a worth appended to them by…
Q: a. Define explicit costs and implicit costs. b. Assume the following: * A firm buys a unit of…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: This is a repeated question since you guys only answerone question at a time! Let's assume that a…
A: Accounting profit is the difference in the revenue a firm gets and the explicit cost (EC) that it…
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: A special shoe manufacturer ABC Co. has costs of production as follows and solve all the subparts:…
A: ABC Co. has a variable cost of $100. We can have the quantity produced and total variable cost in…
Q: [1st_itemBCD] *problem situation in the photo below* Required: In Problem 1, what is Merrilyn’s…
A: Accounting Profit = Total Revenue - Total Explicit Cost Economic Profit = Total Revenue - Total…
Q: Compare the average total cost and the marginal cost and explain the relationship Describe the…
A: Total cost(TC) is the cost(C) incurred while producing total output(Q). Average cost(AC) is the…
Q: Number of Cakes VC MC AVC FC TC ATC 50 1 30 2 50 25 4 155 Table 8.3 Table 8.3 presents the cost…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: Bee & flower is a brand that has been established for more than 30 years in China. His hair care is…
A: Different organisations have to keep an eye on different aspects for their sucessful business.…
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: production as follows: Quantity Total Fixed cost Total Variable Cost 0 200 0 1 200 50 2 200 70 3 200…
A: In a competitive firm there are large number of firms producing identical products thus acting as…
Q: 1,200 B TC 1,000 850 700 TVC 500 2 3 Number of microwave ovens 6. Refer to the figure above. Based…
A: Answer: Note that TC at zero units is $500. The TC at zero units is equal to the total fixed cost…
Q: Vicky quit her $ 75, 000 a year marketing executive job to open her own firm. In Vicky's first year…
A: The accounting profits are the difference between the total revenue and the total explicit cost. It…
Q: An web designer quits a project where she was paid $50,000 on completion of the project. She joins a…
A: Economic Profit:Economic profit refers to the profit which obtained by subtracting the opportunity…
Q: Karen runs a print shop that makes posters for large companies. It is a very competitive business.…
A: Given information, Market price=$1 Fixed cost=$250 Variable cost for 1000 posters=$1800 Variable…
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…
quantity of output(Q),total cost(TC)
and
Which of the following equations is equal to a firm's average profit?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- "The Hickory Cabinet and Furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cost per chair is $40. Price is related to demand, according to the following linear equation: v = 400 - 1.2p Graphically illustrate the profit curve developed . Indicate the optimal price and the maximum profit per month.Student Resources Working at Clayton.... 3/3 practice Gigantic Pharmaceutical Corporation has a patent on a prescription drug, making it the only manufacturer of that prescription drug. Gigantic is currently earning a positive economic profit. (a) Draw a correctly labeled graph for Gigantic and show each of the following. (i) The profit-maximizing quantity, labeled QG (ii) The profit-maximizing price, labeled PG (iii) The average total cost curve, labeled ATC (iv) The area representing the consumer surplus, shaded completely (b) Suppose the demand for the prescription drug increases, and Gigantic hires its warehouse workers in a perfectly competitive labor market. (i) What will happen to Gigantic's demand for warehouse workers? Explain. (ii) What will happen to the wage rate Gigantic pays its warehouse workers and the number of warehouse workers it hires? (c) After Gigantic's patent expires, another firm enters the prescription drug market and produces an identical drug that sells for…A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has average revenue of $6, average total cost of $6, and fixed cost of $270. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 90 units.
- What is relationship between total revenue (TR) and cost (TC) if the price is greater than ATC (is TR greater, less, or equal to TC)? Does the firm make positive economic profit or loss?in which of the following statement is true? (choose one letter only) a. the Marginal Revenue is the approximate revenue from the production and sale of the x+1 unit after x units have been sold.b. the Marginal Cost is the approximate cost of producing the x−1 unit before x units have been produced. c. the Marginal Profit is the profit from the production and sale of the xth unit. d. All of these e. none of the aboveCentral Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery. Muffaletta Sold per Day Price (P) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC) Profit 0 $15 $12 1 14 18 2 13 20 3 12 21 4 11 23 5 10 26 6 9 30 7 8 35 8 7 42 9 6 52 10 5 78 Fill in the table What are the profit-maximizing price and quantity, and what…
- Number of Consumers Who Try the Product Number of Repeat Customers 10 million 10 million Product Energy bar A Energy bar B In the table above, the profit from repeat customers will equal the cost of the advertisement if there are Profit per Repeat Customer 5 million 1 million $6 6 Profit from Repeat Customers $30 million 6 million Cost of Advertisement $10 million 10 million million repeat customers. (Enter your response rounded to two decimal places.)A profit - maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $ 200. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must beless than 100 units.The relationship between the firm's average variable, average total, and marginal cost curves above: Marginal Reveue = Price = US $ 2.50 ; a) Use the graph to find the Firm's profit-maximizing output. b) If the firm maximizes its profit, how much profit does it make (about)? Should the firm stay in business? c) Will other firms with costs the same as Firms enter the market? Explain.
- On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.Table 1A: Costs and Total Production for a Competitive Firm Total Total Total Total Marginal Average Average Average Product Fixed Cost Variable Cost Cost Fixed Cost Variable Total (Q) (TFC) Cost (TVC) (TC) (MC) (AFC) Cost (AVC) Cost (ATC) 1 $20.00 $40.00 A F $50.00 B G L Q V 3. $58.00 C H. M R W 4. $70.00 D $85.00 E J Y Refer to Table 1A. Blanks F and Y can be best filled with values of and --- respectively. O $10.00; $21.00 O $11.00; $22.00 O $10.00; $22.00 O $11.00; $21.0014.The demand function for a new product is p(x) = - 2x + 7 , where p is the selling price of the product and x is the number sold in thousands. The cost function is C(x) = x + 2 . a) Determine an equation for the profit, in standard form and in function notation. b) How many units must be sold for the company to break even?