8. Why is the Minimum Average Total Cost and Efficient Scale important?

Q: Table showing Total Cost and Quantity of Output Quantity of Total Average Total Marginal Cost Output…

A: Average total cost of the total cost per unit of output. Marginal cost is the change in total cost…

Q: Consider the following cost information for Yasir’s tea stall. (Cups of tea per hour) Total…

A: Variable cost represents all the expenses that depends on the level of output, i.e changes with the…

Q: Capital (K)  Labor (L) Total Product (TP) total fixed cost (TFC) total variable cost (TVC)…

A: 1.1. Assume that the cost of capital is 20 and the cost of labor is $10. Total fixed cost (TC) can…

Q: 5. Use the following scenario to answer the questions that follow. Steve owns a bike store. His…

A: Average total cost is referred to as the sum total of all production costs divided by the total…

Q: Use the following table to ccalculate  TVC - keep your calculation for follow up questions: Total…

A: Total variable cost is the cost that changes will the level of production. It increases with…

Q: 7. Data for Windsurfing Sail Firm Q = Quantity; FC = Fixed Cost; VC =Variable Cost; TC =Total Cost;…

A: We have given the data for fixed cost and variable cost for the output level from 0 to 7 Q FC VC…

Q: Output (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78…

A: We are going to undergo cost analysis to answer this question.

Q: 9. What is the relationship between Marginal Cost and Average Total Cost?

A: The total amount paid for resources used to produce a product or to create a service, such as…

Q: (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78 7 93 8…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…

A: Marginal cost is the cost which occurs due to the production of one more unit of output is called…

Q: Production Data In class, we learned about different kinds of average and marginal costs. Workers…

A: Cost is the total expenditure incurred in producing a good or a service. The cost is classified as:…

Q: Define and explain the difference between economics of scale and economies of scope. Include an…

A: Definition: Economies of scale are cost-saving strategies in a production process by increasing the…

Q: 6)ABC company is using labor and capital to build widgets The last employee produced 20 more widgets…

A: 6. The marginal product of labour = 20     The price of labour = $10     The marginal product of…

Q: Assume the average cost when producing 4 units is 10, the average cost of producing 6 units is 8,…

A: The table shows output and AC:

Q: 2. Match the descriptions below to the appropriate concept: A. Economies of Scale B. Efficient Scale…

A:

Q: 9. Problems and Applications Q9 Jane's Juice Bar has the following cost schedules: In the…

A: Marginal cost can be calculated with the given formula:

Q: Explain the difference between economies of scale and economies of scope with an example.  Please…

A: Answer: Economies of scale: When a firm's average cost of production decreases due to an increase in…

Q: 8) EFG Company is using labor and capital to build phones. The last employee produced 90 more phones…

A: The marginal product for a factor of production refers to the addition in output as a result of…

Q: . Jane’s Juice Bar has the following cost schedules:Quantity Variable Cost Total Cost0 vats of juice…

A: Total cost is classified into two parts, variable cost and fixed cost. In the short run fixed cost…

Q: Economics Long run average cost is increasing in economies of scale? 1) True 2) False

A: There are two type of scale in business or firm , economies and diseconomies of scale here we can…

Q: . Why is the Average Total Cost curve U shaped?

A: Average Total cost in economics is the cost that indicates how firms choose to price their…

Q: Calculate VC, FC, AVC and AFC in the following table Out put Total cost Variable Fix Cost AVC AFC…

A: Total cost refers to the costs that are remaining the same for all level of production. Generally…

Q: 1. Find the total cost if marginal cost MC = 4 q+ 15 and fixed cost FC = 100.

A: total cost, in economics, the sum of all costs incurred by a firm in producing a certain level of…

Q: Define total cost, average total cost, and marginal cost.  How are they related?

A: Total Cost (TC) is the cost of production of a good and it includes both the variable cost i.e. the…

Q: When a toy factory makes x dolls a day their total cost is C(x) = 50 + 9x + 0.02x² dollars. What is…

A: ANSAverage Cost (AC) is the per unit cost of the output. It is obtained by dividing the Total Cost…

Q: a) Using the definition Q x AC = TC where Q = output, TC = the total cost of production and AC = the…

A: The average cost of production is calculated by dividing the total cost (TC) by the total output…

Q: 2. Derive the long run average total cost curve and show minimum efficient scale on it.

A: Total Cost curve(TC) is the cost that is incurred in the production of goods in firms. It consists…

Q: "When the total cost of production decrease, we can say that the firm faces positive return to…

A: The firm would result in the production of the various goods and services which would involve the…

Q: Again referring to the table above, the total average cost of producing 25 pizzas a day is: TC TAC=…

A: We know,  Total cost(TC) = Fixed cost (FC) + Variable Cost(VC) Total cost for 25 units = 400 + 200 =…

Q: (Cups of tea per hour) Total Cost in Rs. 0 30 1 33 2 38 3 45 4 54 5 65 6 78 7 93 8…

A: Dear student, There are multiple subparts in this question. I am going to answer the first three…

Q: Complete the table as below: Where, TC= TOTAL COST, TFC = TOTAL FIXED COST, TVC= TOTAL VARIABLE…

A: The table requires various formulas which are listed below.  TVC= TC- TFC Where TFC remains constant…

Q: At 100 units of output, total cost is Tk 30,000 and total variable cost is Tk 14,000. What does the…

A: The total cost of the firm refers to the fixed cost in total and the variable cost in total incurred…

Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the…

A: * SOLUTION :-  By using the formulas we write the table  AFC=FC/Q AVC=VC/Q ATC=AFC+AVC

Q: 4) What is the total variable cost?

A:

Q: 4. What is the significance of the point where the marginal cost curve intersects the average total…

A:

Q: Calculate variable cost, average fixed cost, average variable cost, average total cost, and marginal…

A: TVC = TC - TFC AFC = TFC / Q AVC = TVC / Q ATC = TC / Q MC = Change in TC / Change in Q Q TC TFC…

Q: a. Compute the average cost and marginal cost. Units of output Total Cost Average Cost Marginal Cost…

A:

Q: (d) Find the minimum average production cost per unit and the level of production that minimizes…

A: Average cost(AC) is defined as total cost(TC) divided by the total units produced. Here, units are…

Q: Define economies of scale and explain why they mightarise

A: Economics of scale are the result of production efficiency. It can be a reason for a larges firms to…

Q: 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The…

A: Table is completed by using below formula is shown below. MC=Change in TCChange in Q FC=TC at Q=0…

Q: If production increases, what happens to average total cost (ATC), does it increase only, decrease…

A:

Q: c. What is the average and marginal cost of gumball production (again, measure output in thousands…

A: Total cost is the sum of total fixed cost and total variable cost. The average cost is the total…

Q: Define explicit cost and implicit cost. Briefly discuss the law of diminishing marginal returns.

A: The costs broadly classified into two parts  I) Explicit Costs II) Implicit Costs

Q: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…

Q: ll in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost Fixed…

A: Average total cost (ATC) is determined by dividing total cost by total quantity. Average…

Q: a) Complete the following table by filling in the fixed cost (FC), variable cost (VC), total cost…

A: Total Cost (TC) = Fixed cost (FC) + Variable cost (VC) or  Variable cost (VC) = Total Cost (TC) -…