A bakery operating in competitive markets sells itsoutput for $20 per cake and rents ovens at $30 perhour. To maximize profit, it should rent ovens untilthe marginal product of an oven isa. 2/3 cake per hour.b. 3/2 cakes per hour.c. 10 cakes per hour.d. 25 cakes per hour.
Q: The table below gives a firm's costs. Output Fixed costs ($) Total costs ($) $80 $50 1 $80 $55 2 $80…
A: PRODUCTION cost is the incurred monetary value to produce the goods on factor of production . It is…
Q: of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If…
A: The marginal revenue curve is a horizontal line at the market price, implying perfectly elastic…
Q: 1 3. For the technologies y=min{*,4.x, } and y=+x, compute: 4 a) the total cost and the cost of…
A: Marginal cost (MC) is the addition to the total cost by producing one more unit of output. Average…
Q: he short-run and long-run average cost functions of a firm are generally U-shaped. This implies high…
A: In economics, a CF {"cost function"} is described as a function of an output quantity and P {prices}…
Q: sume that a firm can produce product A, product B, or product C with the resources it currently ys.…
A: Given Product Market Price Output Total Cost A $5 8 30 B $4 20 30 C $1.5 50 30
Q: Lt a product price of $56 Vill this firm produce in the short run? ii) If it is preferable to…
A: Short run is defined as the time period in which atleast one of the factors used is fixed and others…
Q: Lake Charles Seafood makes 500 wooden pack-ing boxes for fresh seafood per day, working in two…
A: Productivity is represented as the ratio between the amount of output and the number of inputs. In…
Q: armer Sam is supplying corns in a perfectly competitive market. In Year 1 he sells 3000 tons of…
A: revenue is the monetary value received from selling the products with respective price level .…
Q: See the cost information in the table below. The marginal cost of the 6th unit is Quantity…
A: The marginal cost of a good refers to the increment in the total cost when an additional unit of a…
Q: Output TFC TVC TC MC ATC A 25 25 --- --- ---- -- В 1 25 25 50 25 50 C 2 25 40 65 32.5 D 3 25 70 95 E…
A:
Q: a. Calculate the marginal cost and average variable cost for each level of production. b. How much…
A: A perfectly competitive market is a hypothetical market which shows following characteristics:…
Q: 1. Šunrise Juice Company sells its output in a perfectly competitive market. The firm's total cost…
A: Marginal cost = Change in total cost/Change in output Average total cost = Total cost/Output a)…
Q: Hannan's pizza shop currently produces 100 pizzas per day and sells them for a profit. She is…
A: Option a can be eliminated because the reason doesn't account for future profitability. It doesn't…
Q: . Marginal Cost Suppose the monthly total costfor the manufacture of 19-inch television sets isC(x)=…
A: The total cost shows the market value of inputs used by the firm in the production of goods and…
Q: Number of Cakes VC MC AVC FC TC ATC 0 50 1 30 2 50 3 25 4…
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: The market for apple pies in the city of Ectenia is competitive and has the followingdemand…
A: a. It is known that the marginal cost which shows the additional rise in cost due to the production…
Q: Required a. How much is the fixed cost to produce the natural-organic oil? b. How many barrels of…
A: The fixed cost does not change with change in the level of output. The variable cost changes with…
Q: A bakery operating in competitive markets sells itsoutput for $20 per cake and pays workers $10…
A: We have, Price of output (P) = $20 Wages (w) = $10 In the competitive market, to maximize the…
Q: d you have left over to buy an apple. Or something healthy. ost the right answers on the discussions…
A: Total utility is the general fulfillment that a buyer gets from the utilization of specific labor…
Q: 2. You have a plant that produces copiers for sale. Your costs for producing copiers are 1: $42, 2:…
A: Given: Number of copies Total cost ($) 1 42 2 44 3 47 4 50 5 54 6 60 7 69 8 80
Q: Please see the attached two pictures, one for the graph, and the other for the questions.
A: In the third part of this question, which was uploaded in the previous link, there is a correction.…
Q: The MARKET PRICE for berries is currently at $75 per metric ton. Green Berry farms is currently…
A: Green Gardens Berry farms (quantity in metric tons) Quantity of farmworker TVC TFC TC MC 1 3 45 20…
Q: Following is the information available for Bubble Gums produced by Bano and Co. Output (Q) Labor…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3.Please resubmit the question…
Q: 3. After graduation, Mitul went back to his village and started a commercial fishery. The…
A:
Q: mark Merchant owns and manages a café at food court. His monthly figures are: Revenue: $5,000…
A: Profit is the major motive of all the firms operating in a market. Profit is the difference between…
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: Marginal cost is the cost of producing an additional unit of output, If candy produces 3 cakes then…
Q: 2 Complete the following table Price Output (0fied cost Variable co Revenue Total Cos Marginal…
A:
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: ATC estimates how much the total cost of the firms is in each production unit. In the LR(long…
Q: Assume that the cost data in the following table are for a purely competitive producer:
A: In perfect competition, there is a large number of buyers and sellers and sellers are selling…
Q: SE THE GRAPH TO ANSWER THE FOLLOWING QUESTIONS: (IF REQUIRED, USE THE DISCREET NUMBER OF BARRELS).…
A: The maximizes profits where the MR= MC. The MC curve cuts the AVC cost curve at its minimum point.…
Q: A Managment instutute can operate for a maxium 12 hours .lectures are the outout of the institute…
A: A function affirms the connection between one info and one result, or many contributions to yield a…
Q: stlon 24 One of these intersects the horizontal axis and may reach the negative area: O Total…
A: Question 24 The answer is Option 2 - Marginal Product Therefore, Marginal product intersect the…
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: (*4") At nine units of output (Q-9), Average Variable Cost is (AVC=) $15 and Average Fixed Cost is…
A: Marginal cost is the additional cost when produce one or more unit here we calculate the marginal…
Q: The fllowing Table describes the costs of production for a local firm Quantity vc TC APC AVC ATC MC…
A: Recall the following concepts: Variable Cost (VC): Costs which increase with increase in quantity…
Q: Part I Given that the marginal cost (mc) to manufacture an Iphone per day is represented by the…
A: Answer - "Thank you for submitting the questions .But, we are authorized to solve one question at a…
Q: a. Compute the average cost and marginal cost. Units of output Total Cost Average Cost Marginal Cost…
A:
Q: 81. If a firm is operating efficiently, how can it reduce cost in the short run? O downsizing…
A: In a market, a firm can efficient operates is business if it is able to earn economic profit in the…
Q: Cost LRAC 40 30 20 10 100 200 400 800 Output b. What happened to the cost of one good as the firm…
A: Marginal is the cost of producing 1 additional unit of output.
Q: A firm is producing 20 units with an averagetotal cost of $25 and a marginal cost of $15. Ifit…
A: Costs are the expenses that firms incur in the production of goods and services.
Q: 1. The value of the inputs owned and used by a firm is an explicit cost. O a. True O b. False
A: When a firm makes production activities, there are different type sof cost associated with this…
Q: Marginal cost is given by 30 + 20Q- 12Q2. Fixed cost is 100. What is the average cost? 30 OA 3Q +…
A: Answer- Need to find - Avg. cost Given in the question- Marginal cost = 30 + 20Q - 12Q2 Fixed cost…
Q: 5) Sarah's Pretzel plant has the following short-run cost function: Cg, K) wg3 + 50K where q is…
A: Cost refers to the amount the is incurred for using factors of production to produce goods. Profit…
Q: Use the following to answer questions 5-6: Production Data for Baseball Bat Company Total output…
A: Diminishing marginal returns are set in when each additional labor hired leads to less extra output.
Q: Labor Output (units per week) (workers per week) 1. 20 50 3 70 4. 85 5. 95 6. 100 The table above…
A: Marginal cost: - marginal cost is the cost incurred in the production of an additional quantity of…
Q: At Emory's Pens and Pencils when they produce 50 pens their total cost is $80. Emory's marginal cost…
A: Average Total Cost (ATC) can be calculated by dividing the Total Cost (TC) by Quantity (Q).
Q: Consider the following cost information for apizzeria:Quantity Total Cost Variable Cost0 dozen…
A: Costs are the expenses that firms incur in the production of goods and services.
Q: Suppose the cost data below are for Shopify. a firm based in Waterloo, Ontario that is in an…
A: Marginal Cost is the change in total cost with respect to change in total output. We are going to…
Q: Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a…
A: Marginal cost measures the additional cost incurred in order to produce one additional unit of…
A bakery operating in competitive markets sells its
output for $20 per cake and rents ovens at $30 per
hour. To maximize profit, it should rent ovens until
the marginal product of an oven is
a. 2/3 cake per hour.
b. 3/2 cakes per hour.
c. 10 cakes per hour.
d. 25 cakes per hour.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Refer to the to graph on the right. Which level of output in the graph below represents the minimum efficient scale? OA 1,000 books B. 20,000 books C. 40,000 books $22 00 D. 80,000 books 20.00 18.00 Which size bookstore is more likely to expenence diseconomies of scale? Long-nun Average cost O A. Abookstore selling 1.000 books per month B. A bookstore seling 20,000 books per month C. Abockstore selling 40,000 books per month 40,00.000 OD. A bookstore seling 80 000 books per month 1,000 20,000 Quantry of books sold per monthPrice and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6The graph below displays the short-run cost curves for Paola's Pears, a small farm competing in the perfectly competitive pear market. $7 MC ATC AVC 100 200 300 400 500 600 700 800 Pounds of Peara (a) If the market price for a pear is $5, how many pears would Paola produce to maximize her profit? [ Select] (b) At a $5 market price, what is the maximum profit (or minimal loss) Paola would earn? [Select] Price of Pears $6 $5 34 $3 $2 S >
- 3. You own WYNELL's Fashions, which sells prom dresses. Your firm has the following cost schedule: If vou produce this quantity The average total cost per dress is ... $100 40 $101 41 Your current output is 40 prom dresses, all of which have been sold. You receive a call from an eager potential customer, who offers to pay $150 if you will produce a prom dress for her Calculation space to show your work What would your profit or loss be on the 41st prom dress? (Show your work.)A bookstore is selling books for $9.99 each or three for $25. If Evi buys 2 books, what is the marginal cost of the 2nd book? OA. $25.00 OB. $9.99 OC. $5.02 OD. $8.33 OE. $19.98 If Evi buys 3 books, what is the marginal cost of the 3rd book? OA. $25.00 OB. $8.33 OC. $9.99 OD. $19.98 OE. $5.02Vinnie’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?
- A 85 45 30 25 10 D. 10 18 20 32 Refer to the graph, at quantity 32 Marginal Cost (MC) is Select one: O a. $25 O b. $85 $45 O d. $301. 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.What is the law of diminishing returns? Why does marginal product eventuallydiminish?b. Explain the relationship between marginal product and average product. Lin’s makes fortune cookies. Anyone can make and sell fortune cookies, so thereare dozens of producers. All fortune cookies are the same and buyers and sellersknow this fact. In what type of market does Lin’s operate? What determines theprice of fortune cookies? What determines Lin’s marginal revenue?d. What is the shape of the AFC curve and why does it have this shape?
- See Hi At a market price of $5 your artisanal pencil business maximizes profits by producing 484 pencils per day. When you produce this quantity of pencils per day, your average cost per unit is $4. What is your total revenue per day? S What is your total cost per day? S What is your daily profit? SCost LRAC 40 30 20 10 100 200 400 800 Output b. What happened to the cost of one good as the firm increased its output from 100 units to 200 units and from 200 units to 400 units? c. What is the firm experiencing as it increased it scale of operation from 100 units to 400 units? d. What is the firm experiencing if it chooses to produce at point P? Give reason for your answer. e. Which point would be the best point for the firm to produce at? Give reason for your answer.Round your answeis LU 2 UCUNTial plats. Output 1 3 4 5 6 www. Average Variable Cost 30 a. Complete above the table. Quantity: Break-even $ Average Total Cost 1 O Loss 140 80 63.33 56 56 57 65.43 ✔ $ Marginal Cost 110 30 20 30 34 Prev 56 62 116 b. What is the shutdown price? Shutdown price: $ c. If the market price of the product is $56, what quantity will Marshall's Meats produce? What will be its ✓:$ Total Cost $110 140 6 of 13 160 Quantity: d. If the market price of the product is $20, what quantity will Marshall's Meats produce? What will be its pre # 190 224 280 342 458 Next >