The production manager of a clothing manufacturer estimates that the total annual cost of producing men’s...

The production manager of a clothing manufacturer estimates that the total annual cost of producing men’s suits is given by the equation: C = 5,000 + 4,100Q – 4.4Q2 + .004Q3. What is the minimum price the firm can accept to not shut down in the short run? Hint: Write your answer to two decimal places.

A firm produces 100 units of good A at a total cost of $1,500 and separately 200 units of good B at a cost of $2,000. By combining the production of A and B, it is possible to produce the same quantities of A and B respectively at a combined total cost of $2,250. Compute the economies of scope experienced by this firm. Hint: Write your answer to two decimal places.

Expert Solution

Rahul Sunny answered 2 years ago

A firm is producing 1,000 units of a good and the total cost of production is...

A firm is producing 1,000 units of a good and the total cost of production is $4 million. $1 million in costs go to fixed factors like buildings, insurances, and operating licenses. The remaining $3 million goes to workers and suppliers. a) Using the numbers provided, calculate the average total cost, the average fixed cost, and the average variable cost? b) Explain what is meant by marginal cost? c) If the marginal cost for the firm of producing 1,000 units...

A farmer is considering producing turfgrass seed. She estimates the total fixed cost (which are difficult...

A farmer is considering producing turfgrass seed. She estimates the total fixed cost (which are difficult to allocate) to be about $750,000 and when 20,000 bags are produced the variable cost is $1,500,000. a) How many bags of seed must the farmer sell to break even? Assuming the producer can sell the seed for $125 per bag. b) What is the breakeven price? The farmer indicates she will probably sell about 30,000 bags. c) Your insurance firm has told you...

On the basis of past experience, Martin Clothing Store manager estimates that the probability that any...

On the basis of past experience, Martin Clothing Store manager estimates that the probability that any one customer will make a purchase is 0.30. Martin Clothing Store forecasts ten customers will enter the store in the next hour; the expected number of customers who will make a purchase is __________. The standard deviation for the number of customers who will make a purchase is __________. NOTE: Write your answers in number format, with 2 decimal places of precision level. Add...

A manufacturer estimates that the profit from producing ? refrigerators per day is ?(?) = −8?^2...

A manufacturer estimates that the profit from producing ? refrigerators per day is ?(?) = −8?^2 + 320? dollars. What is the largest possible daily profit?

Total cost of producing each product

A manufacturing company produces three products: A, B, and C. The following data is available for the year: Product A: 10,000 units produced, direct materials cost per unit $5, direct labor cost per unit $10, manufacturing overhead cost per unit $8.Product B: 5,000 units produced, direct materials cost per unit $8, direct labor cost per unit $12, manufacturing overhead cost per unit $10.Product C: 3,000 units produced, direct materials cost per unit $12, direct labor cost per unit $15, manufacturing...

Table 1. shows the hourly production and Total Cost estimates for a new manufacturing firm wishing...

Table 1. shows the hourly production and Total Cost estimates for a new manufacturing firm wishing to enter the smart phone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values. Can you show the excel formula ?? Table 1. Smart cell phones produced in an hour Total Cost (TC) Variable Costs (VC) Average Variable Costs (AVC) Average Total Costs (ATC) Average Fixed Cost (AFC) Marginal Cost (MC)...

- The average total cost of production a) equals total cost of production multiplied by the...

- The average total cost of production a) equals total cost of production multiplied by the level of output. b) equals total cost of production divided by the level of output. c) equals the explicit cost of production. d) is the extra cost required to produce one more unit. - The law of diminishing marginal returns a) ultimately explains why production displays diseconomies of scale. b) sets in because not all workers are equally productive c) applies only in the...

A manufacturer estimates that production (in hundreds of units) is a function of the amounts x...

A manufacturer estimates that production (in hundreds of units) is a function of the amounts x and y of labor and capital used, as f(x,y)=[ 1/3x-1/3+1/3y-1/3]-3. Find the number of units produced when 8 units of labor and 27 units of capital are utilized. Find and interpret fx (8,27) and fy (8,27). What would be the approximate effect on production of increasing labor by 1 unit? A) The number of units produced when 64 units of labor and 125 units...

COST OF PRODUCTION ASSIGNMENT Total &n

COST OF PRODUCTION ASSIGNMENT Total Total Average Average Average Total Fixed Variable Total Fixed Variable Total Marginal Product Cost Cost Cost Cost Cost Cost Cost (Q) (TFC) (TVC) (TFC+TVC) (TFC/Q) TVC/Q) (TC/Q) (DTC) 0 $________ $0 $________ $________ $________ $________ $________ 1 $________ $85 $________ $________ $________ $________ $________ 2 $________ $125 $________ $________ $________ $________ $________ 3 $________ $150 $________ $________ $________ $________ $________ 4 $________ $240 $________ $________ $________ $________ $________ 5 $________ $350 $________ $________ ...

What is the average total cost when producing three units?

Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.Round your answers to two digits after the decimal.QuantityMarginal CostFixed CostVariable CostTotal CostAverage Fixed CostAverage Variable CostAverage Total Cost01$40.002$68.003$105.00???4$20.00$400.00What is the average total cost when producing three units?

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