8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000,a. average fixed cost is 50 cents.b. average variable cost is $2.c. average total cost is $2.50.d. average total cost is 50 cents.

Given that, Output (Q) = 400units Total cost = $1,200 Total variable cost = $1,000

8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs ar a. average fixed cost is 50 cents. b. average variable cost is $2. c. average total cost is $2.50. d. average total cost is 50 cents.

8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs ar a. average fixed cost is 50 cents. b. average variable cost is $2. c. average total cost is $2.50. d. average total cost is 50 cents.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

See similar textbooks

Related questions

Q: A company is planning to manufacture snowboards. The fixed costs are $400 per day and total costs…

A: Given that, Fixed costs are $400 Daily output is 20 boards The total cost is $5400 Total cost =…

Q: Please answer each question with sufficient detail. Relevant detailed responses are highly…

A: The effective annual interest rate is the true interest rate on an investment or advance since it…

Q: 2. A car importer was preparing in September 2021 to accept the 2022 models. In order to clear the…

A: Price elasticity of demand = Percentage change in quantity / Percentage change in price.

Q: The table lists weights (pounds) and highway mileage amounts (mpg) for seven automobiles. Use the…

A: Scatter plot diagram shows the graphical representation of relationship between two variables using…

Q: Assume the market thinks there is a 40% probability of devaluation of 5% within the next month. How…

A: Robert Mundell and Fleming wrote the theorem when there was a fixed exchange rate system. The model…

Q: The table below shows cost data for producing different amounts of cars. Suppose this market is a…

A: We have given the total revenue and cost structure of a firm who is selling its product in monopoly…

Q: 2. In the space below, insert the names for X and Y axis, graph LRAS and AD (Aggregate Demand) line,…

A: Equilibrium is where AD = LRAS AD = Aggregate demand LRAS = Long run aggregate supply When AD =…

Q: Q1. Jerry has wealth of $60 and derives utility from this according to the utility function U (w) =…

A: Given, Utility function : U(w) = 1 - 1/w Wealth of Jerry = 60 Probability of winning lottery = 50%…

Q: "In this 3 authors Baron, Drucker and Mitchell" please explain there ideas.

A: According to Baron, "Opportunities to produce something new that has the potential to yield economic…

Q: True/False A Well tested or widely accepted economic theory is often called an economic principle

A: The economic principles are those principles which satisfy unlimited consumer wants with very less…

Q: In the long run, the representative firm in monopolistic competition tends to have: Select one: a. a…

A: A monopolistic competitive market structure is characterised by a large number of large vendors,…

Q: A project is being evaluated. The project will create the following cash flows: Year Cash Flow 0 $…

A: Modern capital budgeting techniques in financial management include NPV (Net Present Value) and IRR…

Q: Penelope utility function is U (a, b) = a+ 10b−b2, where a is the amount of apples consumed and b is…

A: Utility function : U (a, b) = a+ 10b−b2 Income = 100 b pounds on banana cost = b2 1 pound of banana…

Q: Explain how the international movement of products and of factor inputs promotes an equalization of…

A: The process of inexpensive manufacturing inputs becoming more costly while expensive inputs becoming…

Q: Question 5 Pedro's utility function is U(a, b) =a+10b-b², where a is the amount of apples consumed…

A: Utility function : U (a, b) = a+ 10b−b2 Income = 100 b pounds on banana cost = b2 1 pound of banana…

Q: 3. John thinks that four 0.5kg bags of flour are exactly as good as one 2kg bag of flour. John has…

A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…

Q: Vision technologies, Inc., is a small company that uses ultra-wideband technology to develop devices…

A: Total Present Value means, in case of a Financial Offer comprising of Financial Consideration…

Q: • point of diminishing returns (D) most productive point (P) economic capacity (E) Once a point is…

A: No of Workers TP 1 10 2 80 3 180 4 240 5 280 6 294 Variable Cost = 220 per day Fixed…

Q: A fixed capital investment of P17,555,347 is required for a proposed manufacturing plant and an…

A: A payout period refers to be used to describe the time frame during which a project or investment is…

Q: P&G sold its prescription drug business to Warner Chilcott, Ltd., for $3.1 thousand millions. If…

A: P&G sold his business for 3.1 thousand million Revenue from sales = 2billion Net Profit = 20% of…

Q: Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they…

A: The net present value or net present worth applies to a series of cash flows occurring at different…

Q: Suppose the market for cereal is monopolis competitive and in long-run equilibrium. TH demand (and…

A: Monopolistically competitive market is characterized by the presence of the many buyers and sellers.…

Q: 8. Consider the OLG model with capital. Each individual is endowed with y units of the consumption…

A: Given information Utility function U=C10.5C20.5 Consumption when young=C1 Consumption when old=C2…

Q: can you please explain part c in more details

A: Government intervention is the policy of the government under which it controls the private sectors…

Q: Consumer surplus in a market for a product would be equal to the area under the demand curve if A)…

A: Consumer surplus refers to difference between willingness to pay and actual payment. Consumer…

Q: Redo the problem in Question 2 under the assumption that the person has utility function u(c) =…

A: Contingent consumption refers to the consumption of the buyer when there are uncertain conditions.…

Q: Why do so few countries impose high tax rates on wealthy people and luury goods?

A: Taxes are the compulsory payments which are made by both buyers and sellers of a commodity for the…

Q: A person has wealth of $500,000. In case of a flood her wealth will be reduced to $50,000. The…

A: Contingent Consumption is the consumption by the purchaser in case of uncertain conditions. The…

Q: tions. Each individual is endowed with y goods when young and old and nothing when niddle-aged. The…

Q: Answer True, False or Uncertain. Brieáy explain your answer 3.The rate of return equality holds in…

A: When a security or other asset cannot be rapidly and readily sold or exchanged for cash without…

Q: firm is producing 20 units with an average total cost of $25 and marginal cost of $15. If it were to…

A: Marginal cost refers to the cost of production incurred for every additional output produced. It can…

Q: Find the annual worth of the shown cash-flow diagram, as a function of X, when i = 20% per year. TT…

A: The annual worth of a property is the amount for which a property is reasonably expected to be let…

Q: If the reduction of sulfur dioxide is increased from 7.0 million to 8.5 million tons, the total…

A: the output is determined by the intersection of marginal cost of reducing pollution curve and…

Q: how does opportunity cost affect the decision-making process for personal decisions? Please give a…

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

Q: The term “moral hazard” describes increases in risky behavior resulting from efforts to make that…

A: The phrase "moral hazard" in economics describes the circumstance that arises when a person has the…

Q: Suppose both a monopolist and a perfectly competitive firm are producing in their respective markets…

A: All firms seek to maximize profit and economists in general consider this is a good thing in most…

Q: Lourdes has just retired and plans to consume $14257 from the retirement account every year for the…

A: Given Annual amount = $14257 Time = 12 years Interest rate = 9.6 % Therefore The present worth of…

Q: Suppose that the equilibrium price of french fries rises while the equilibrium quantity falls. The…

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

Q: a. Draw a graph showing demand and supply in a perfectly competitive market with a perfectly elastic…

A: At the point when supply and demand intersect, or the intersection of the two, market equilibrium is…

Q: In an expansion, holding everything else constant, a previously existing budget surplus will…

A: Expansion is a phase in the business cycles when the economy experiences high business activities.…

Q: 1.Emily and Joel Schumaker are married clients who have just been approved for a twenty-year,…

A: Cash flow is the net balance of money coming into and going out of a firm at a particular moment in…

Q: How many dishwashers will JT Minn. produce? What price will JT Minn. charge? Oless than $20 O$ 20…

A: Monopoly will produce where MR = MC MR = Marginal revenue MC = Marginal cost Price is always…

Q: Galvanized Products is considering the purchase of a new computer system for their enterprise data…

A: Working notes: Initial Cost = $80000 Loan amount = 80,000 x (1/4) = 20,000 interest rate on loan…

Q: Assume that Donnell Corp. is currently producing 500 units of output per period, using 25 units of…

A: Production function is the technological relationship between input and output. Firm's objective is…

Q: The last digit of the heights of 67 statistics students were obtained as part of an experiment…

A: Histogram is the graphical representation with bars of two variables. Data are reported when…

Q: What would happens to the quantity demanded if the price of bottled water rose from $1.00 to $1.50?…

A: The point of equilibrium lies at the point where the supply curve intersects the demand curve or the…

Q: The firm Tyrex, Inc. is facing losses, and needs to decide whether to shut down or keep producing.…

A: In the perfectly competitive market, the price is determined by the market forces of demand and…

Q: Question 4 Susan loves sandwiches and lemonade. Her utility functions is U (s, 1) = min{s²+ 212, 2s2…

A: Utility function : U (s, l) = min{s2 +2L2 , 2s2 +L2 }, Optimal consumption point for a consumer is…

Q: The price of apples that shane buys monthly drops from $8 to $4, the equilibrium quantity is 4.…

A: Consumer surplus is the difference between willingness to pay and the market price. Consumer…

Q: assume there is a huge pandemic and the US Gov’t requires lockdowns that close many businesses and…

A: Aggregate demand is the sum of consumption , investment , government spending and net export. =>…

Question

8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000,
a. average fixed cost is 50 cents.
b. average variable cost is $2.
c. average total cost is $2.50.
d. average total cost is 50 cents.

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

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

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
The Towson Table Company has fixed costs of $5,000 per month. Variable cost at the current level of output of 100 tables per month is $10,000. Which of the following is true for the company? A. Average cost of production is $150. Average cost of production is $100. C. Average fixed cost of production is $150. Average variable cost of production is $150. B. D.
A firm is producing 20 units with an average total cost of $25 and a marginal cost of$15. If it were to increase production to 21 units, which of the following must occur?a. Marginal cost would decrease.b. Marginal cost would increase.c. Average total cost would decrease.d. Average total cost would increases
Which of the following costs will not change as output changes? 1. A. marginal cost 2 B. total variable cost 3. C. average variable cost 4. D. total fixed cost
A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it increases production to 21 units, which of the following must occur? a. Marginal cost will decrease. b. Marginal cost will increase. C. Average total cost will decrease. d. Average total cost will increase.
The average total cost (ATC) curve will be downward sloping so long as the a. marginal cost is greater than average total cost. b. marginal cost is less than average total cost. c. average variable cost is less than average total cost. d. average fixed cost is less than average total cost
Section 11.5 The Short-Run and Long-Run Average Total Cost Curves exhibit 1 SRATC for small plant SRATC for medium plant SRATC tor large plant LRATC B $500 $400 Economies of Scale Constant Returns to Saie 1,000 1,200 Quantity of Computers (per day) Notice that the long-run average total cost (LRATC) curve is much flatter than the short-run average total cost (SRATC) curve. This is because firms can be more flexible in the long run-they can choose which short-run cost curve they want to operate along, by choosing their plant scale. But they cannot do this in the short run, during which they are stuck with their existing short-run cost curve. That is, in the short run, the firm operates with the short-run curve it has based on past decisions. However, in the lang run, the firm is able to choose the short-run curve it wants to use. In Exhibit 1 above, explain why the curve between A and B looks different than the curve from A to C. Provide an example of how a firm could opt to follow the…
When output increases from 20 to 30 units the total cost increases from $500 to $600. Assuming the fixed cost is $200, which of the following is true? a. Average total cost falls b. The production cost per unit is increasing c. Average fixed costs rise d. Marginal cost is equal to fixed cost
1. Economies and Diseconomies of scale 2. Graph of marginal cost, average cost and average total cost. Take an example 3. Marginal cost, average variable cost, and average total cost. Take an example
Total variable cost as output increases, and total fixed cost as output increases Select one: A. increases; does not change B. increases; increases C. increases; decreases D. does not change, does not change