Total Product12323456578910Multiple ChoiceOAverage FixedCost$ 150.0075.0050.0037.5030.0025.0021.4318.7516.6715.00OThe accompanying table gives cost data for a firm that is selling in a purely competitive market. The marginal cost column reflectseconomies of scale.AverageVariable Cost$ 25.0023.0020.0021.0023.0025.0028.0033.0039.0048.00diseconomies of scale.the law of diminishing returns.Average TotalCost$ 175.0098.0070.0058.5053.0050.0049.4351.7655.6763.00the law of diminishing marginal utility.Marginal Cost$ 25.0021.0014.0024.0031.0035.0046.0168.0786.95128.97

Marginal cost:Marginal cost is the additional unit that is added to the total cost. It is…

The accompanying table gives cost data for a firm that is selling in a purely competitive market. The marginal cost column reflects Multiple Choice economies of scale. diseconomies of scale. the law of diminishing returns. the law of diminishing marginal utility.

The accompanying table gives cost data for a firm that is selling in a purely competitive market. The marginal cost column reflects Multiple Choice economies of scale. diseconomies of scale. the law of diminishing returns. the law of diminishing marginal utility.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Related questions

Q: TB MC Qu. 10-45 (Static) Sara borrowed... Sara borrowed $5,000 on a 120-day 5% note. Sara paid $500…

A: The interest paid at the conclusion of a credit cardholder's payment cycle is determined by credit…

Q: Price $150 200 250 300 350 400 b. Belting i 450 500 550 600 650 b. Resulting amount of…

A: Price control can be of two types: Price ceiling or price floor. The price ceiling refers to the…

Q: Table: ABC and XYZ | QMC of ABC Co. MC of XYZ, Inc. 0 1 $5 2 10 -- 3 20 4 25 5 30 6 35 7 40 8 45 --…

A: The table shows the marginal cost (MC) of producing each unit of output for two companies, ABC and…

Q: 3. Over the last several decades which has increased more in the United States, poverty or income…

A: This can be defined state of financial deprivation where individuals or communities lack the…

Q: 4. Using a payoff matrix to determine the equilibrium outcome Suppose that Flashfry and Warmbreeze…

A: The payoff matrix is given as Warbreeze HighLowFlashfryHigh 11, 112, 13Low 13, 210, 10

Q: A period during which overall inflation rates are positive but falling is: Multiple Choice…

A: The inflation rate shows the percentage change in the overall price level of goods and services in…

Q: QUESTION 32 Consider a firm operating in a competitive market. The firm is producing 50 units of…

A: A perfectly competitive model refers to a market situation at which there are many buyers and…

Q: 8. (TRUE/FALSE) In the direction of increasing emissions, the MAC is actually a MB function 9.…

A: "As per the policy, we can provide a solution to the first question. Kindly raise the question again…

Q: hich of the following will cause a reduction in the debt-to-GDP tio? A) A reduction in the inflation…

A: In an economy, the debt-to-GDP ratio refers to the measurement of an economy's total debt or…

Q: Edgar is working part-time. Diane is on layoff. Who is included in the Bureau of Labor Statistics'…

A: People who work part-time generally put in less hours per week and they get paid accordingly. A…

Q: Divide the economy into two sectors: tradable (T) and non-tradable (NT). Both sectors can be…

A: On the plane (L vs. K): The fall in the real exchange rate would likely lead to an increase in the…

Q: Refer to the above graph. The long-run relationship between the rate of inflation and the…

A: The long-run relationship between unemployment and inflation is often described by the Phillips…

Q: Budgetary slack is when budget numbers are challenging but include achievable levels of expected…

A: The budgetary slack is the practice of creating a built-in cushion in budgets so that the actual…

Q: The town of Smallsville is considering building a museum. The city will have to borrow money to…

A: Marginal benefit describes the maximum amount a consumer is willing to pay for an additional good or…

Q: 7. Which option best represents the p-value (p) of the appropriate test statistic for overall model…

A: Regression analysis is a set of statistical methods used to estimate the relationship between a…

Q: 2. Problems and Applications Q2 If the Fed wants to increase the money supply, it can If the Fed…

A: "Fed" is a colloquial term often used as an abbreviation for the Federal Reserve System of the…

Q: a. To maximize its profits, the firm should produce [ and charge a price of $ b. What area…

A: A firm produces at the intersection of MR and MC curves to maximize the profit. Hence,…

Q: We now want to understand how to measure the impact of the policy. If the policy is effective in…

A: To measure the effect of the Ultra Low Emission Zone (ULEZ) on pollution in London, a regression…

Q: A monopolist faces two geographically distinct markets, say market 1 is New York and market 2 is…

A: A monopolist is a single seller or producer in a market with no close substitutes for its product.…

Q: O $2.50 O $1.50 O $1.25 $0.50

A: Total revenue = Price * QuantityTotal cost = Average cost * QuantityProfit = Total revenue - Total…

Q: The graph below shows an economy in long-run equilibrium. Suppose that aggregate demand unexpectedly…

A: Aggregate demand:Aggregate Demand is when the total number of consumers have the desire to buy…

Q: The graph below presents the average variable and average total costs for the firm Hayek Co..…

A: The market is characterized by a large number of sellers and buyers with homogeneous products. The…

Q: Amy and John are playing a simultaneous game. The first number in each cell is the payoff to Amy and…

A: Pure strategy Nash equilibrium: Pure strategy NE is the intersection of the best response of each…

Q: Refer to the diagram to the right which shows various points on three different production…

A: PPF(Production Possibility Frontier) shows different levels of combination of two goods (here, food…

Q: Suppose the government of Iraq is deciding what kind of monetary policy and exchange-rate regime to…

A: Monetary policy is done to control and manage the amount of money in circulation and interest rates…

Q: he number of families covered is million and the premium is per family per year.

A: The graph obtained from the prevoius solution is

Q: What lump sum of money must be deposited into a bank account at the present time so that $5,000 per…

A: Let P be the amount deposited now. After 6 years an annual withdrawal of $5000 is made for 12…

Q: QUESTION 8 If your total profit is 8000 dirhams and your total revenue is 10000 dirhams. How much is…

A: Costs refers to the expenses that incur in the process of production of goods or services. There are…

Q: If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would…

A: Perfect competition is a market consisting of a large number of buyers and sellers. In this market…

Q: What is one of the attractions of the Eurobond market? Multiple Choice A) There are more stringent…

A: This can be described as the instruments of the debt that show a loan made by an investor to a…

Q: Assume that initially PPP holds, if the inflation rate in your country falls relative to the…

A: The objective of the question is to understand the impact of a relative decrease in inflation rate…

Q: Riley and Chad run a water sports business in Noosa. They have to wash the surfboards/kayaks each…

A: Absolute advantage is the ability to produce a good or service using fewer resources (inputs) than…

Q: 2. How would you explain to a skeptical bank manager why the socially optimal number of bank…

A: Explaining to a skeptical bank manager why the socially optimal number of bank robberies is not zero…

Q: Calculate the elasticity of supply for the supply curve P=10+3Q when P=25 and Q=5

A: This can be defined as the degree of responsiveness or sensitivity of one variable (like QD or QS)…

Q: INFLATION RATE LRAS AD SRAS REAL GOP GROWTH RATE Suppose a change in fiscal policy causes the AD…

A: This can be defined as a concept that shows the total demand for the products and services in a…

Q: A reduction in government spending usually causes interest rates to be O O A) Higher and increases…

A: The money market is a market for financial assets. It includes interest rate and money supply…

Q: Suppose that Hungary and Norway both produce sunflowers and wheat. Hungary's opportunity cost of…

A: Comparative advantage is a basic notion in the theory of international trade that emphasizes the…

Q: 13. The variety of supply curves The following graph displays four supply curves (LL, MM, NN, and…

A: The price elasticity of supply is calculated as the percentage change in quantity supplied divided…

Q: ne formula for the government spending multiplier is A) 1/(1+ MPC). B) 1/MPS. C) 1/MPC.

A: Marginal propensity to consume (MPC) measures the change in consumption spending due to a change in…

Q: P = ? 0 $500 $500 $500 $500 $500 $500 0 2 4 5 i = 10% $500 $500 $500 $500 6 7 8 $500 10 11 N 12 13…

A: Present value P0 is the sum of discounted values of future cash flows. It represents the equivalent…

Q: For which of the following goods, the burden of a sales tax is borne more by buyers than by sellers?…

A: There are several goods in the market, which are always in demand due to their necessity. These…

Q: In the long run, efficiency of the Coase Theorem depends on the ability of private bargaining to…

A: The objective of the question is to understand whether the efficiency of the Coase Theorem in the…

Q: Jisoo plants a number of trees in her garden every week, which keeps her neighborhood cool. Which of…

A: Externalities: When a firm produces a good, sometimes it creates costs or benefits for other firms.…

Q: The "Misery Index" More than one (perhaps all) of the above answers is correct. measures the…

A: The unemployment rate and inflation rate are two important macroeconomic variables that are combined…

Q: The Security Market Line (SML) for the United States is shown on the graph below. Suppose that the…

A: An investor looks for the probability of achieving a higher return rate. The risk-averse individual…

Q: example of an automatic stabilizer is A) A food voucher program. B) Indexing the Canada Pension Plan…

A: Stabilizer:A stabilizer is a macroeconomic component or factor that helps in decreasing the adverse…

Q: Hubert and Larry are trying to decide what movie to see together. There are two theaters in town,…

A: There are two players : Hubert & Larry Strategy Set of Hubert = Strategy Set of Larry = { Movie…

Q: How many regional Federal Reserve Bank presidents serve on the Federal Open Market Committee as…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: 1. Consider the market for some agriculture product X. Suppose the government introduces a price…

A: The demand curve is the graphical representation of different quantities of commodities that the…

Q: P1 9,3 U D 2 L 30, 40 5, 15 a. Derive the best response of P1 when P2 takes the pure strategy and…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Question

Total Product
1
23
2
3
456
5
7
8
9
10
Multiple Choice
O
Average Fixed
Cost
$ 150.00
75.00
50.00
37.50
30.00
25.00
21.43
18.75
16.67
15.00
O
The accompanying table gives cost data for a firm that is selling in a purely competitive market. The marginal cost column reflects
economies of scale.
Average
Variable Cost
$ 25.00
23.00
20.00
21.00
23.00
25.00
28.00
33.00
39.00
48.00
diseconomies of scale.
the law of diminishing returns.
Average Total
Cost
$ 175.00
98.00
70.00
58.50
53.00
50.00
49.43
51.76
55.67
63.00
the law of diminishing marginal utility.
Marginal Cost
$ 25.00
21.00
14.00
24.00
31.00
35.00
46.01
68.07
86.95
128.97

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define MC

VIEW

Step 2: Explain the correct option

VIEW

Step 3: Explain the incorrect option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
a lobaster catch is sold by a fisher at $15 per kilogram the lobster fisher has the following total costs at each possible quantity $1500 at 0 kiklograms ,$3200 at 800 kilograms and $12200 at 1000 kilograms a) creat a table with following 10 coloumns :1 ) price 2) quantity 3) total revenue 4) fixed cost 5) variable cost 6) total cost 7) average fixed cost 8) average variable cost 9) average cost and 10) marginal cost .fill in this table based on the information provided in the question b) Draw the fishers marginal revenue ,marginal cost and average cost curves on graph ,plot only the two endpoints at 0 and 1000 kilograms for the marginal revenue curve and plot five points for each of the marginal cost and average cost curves for a total of 12 points (exclude the origin point for both costcurves) remember to plot marginal values such as marginal cost halfway between the two relevant quantities on the horizantal axis c) what is the fishers profit -maximizing or loss -mininmizing quantity…
Charlie Co. sells pastries and its production and cost table is given below. A workercosts $100 a day, the firm has fixed costs of $200.L Q MP MC TC ATC0 01 202 503 904 1205 1406 1507 155a. Complete the table above [7 marks]b. Compare the average total cost and the marginal cost and explain therelationship [3 marks]c. Describe the methods that can be used to determine where profit is maximized?[3 marks]
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?
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?
Consider the following cost information for a pizzeria:Quantity Total Cost Variable Cost0 dozen pizzas $300 $0I 350 502 390 903 420 1204 450 1505 490 1906 540 240a. What is the pizzeria's fixed cost?b. Construct a table in which you calculatethe marginal cost per dozen pizzas using theinformation on total cost. Also, calculate themarginal cost per dozen pizzas using the inforpmation on variable cost. What is the relationshipbetween these sets of numbers? Explain.
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.
Danilo and his wife operate a restaurant where they sell all their meals for $14.00 each. The markup on each meal is $5.00 and overhead expenses are 19.00% of cost. a. How much does it cost them to make each meal? $0.00 Round to the nearest cent b. What is their operating profit per meal? 50.00 Round to the nearest cent c. Calculate the break-even price. Round lo the nerert rent
The following is a total cost curve. Total cost ($) 1000 900+ 800- 700- 600- 500- 400- 300- 200- 100- 04 50 TC 100 150 200 250 300 350 Quantity (q) Q On the diagram to the right, sketch the corresponding marginal cost curve. Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. Marginal cost per unit ($) 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00 0.00+ 0 50 100 150 200 250 Quantity (q) 300 350 Q After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end your curve.
If the firm sells 5 units at a price of $30 each, then the Quantity Cost 0 1 2 3 01 5 6 (in Costs dollars) (in 0 Fixed Total Average Costs Total Costs (in (in dollars per unit) 35 60 dollars) dollars) 15 40 55 40 40 40 75 37.5 40 100 125 40 165 55 160 40 200 marginal unit produced Average Variable Costs (in dollars per unit) 90 40 130 32.5 22.5 15 33.3 17.5 33.3 20 26.6 Marginal Costs (in dollars per unit) 15 20 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.
The following is a total cost curve. Total cost ($) 1000- 900- 800- 700- 600- 500- 400- 300- 200- 100- 0- 0 TC 50 100 150 200 250 300 350 Quantity (q) Q On the diagram to the right, sketch the corresponding marginal cost curve. Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. Marginal cost per unit ($) 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00+ 0 50 100 150 200 Quantity (q) 250 300 350 After plotting the final point of your multipoint curve, press the Esc key on your keyboard to end your curve.
Assume the firm can sell its product for $14 each. TR VC AVC TC ATC MC - $2000 100 $1400 $600 $2600 $26.00 $6.00 200 $2800 $5.00 $3000 $15.00 300 $1920 $6.40 $3920 $9.20 400 $5600 3280 $8.20 $13.20 $13.60 A. What are fixed costs? B. If the firm can sell its product for $14, a profit maximizing firm will sell units for a profit/loss/breakeven (circle one) of $