Question
In: Economics
In order to determine _____, the firm's total cost must be divided by the quantity of...
In order to determine _____, the firm's total cost must be divided by the quantity of its output.
A) fixed cost
B) average cost
C) diminishing marginal returns
D)variable cost
Solutions
Expert Solution
Option B.
The average cost of production of the firm = Total cost of production / Quantity of Output produced. Thus, in order to determine average cost, the firm's total cost must be divided by the quantity of its output.
Rahul Sunny answered 1 year agoRelated Solutions
A firm's marginal cost represents: Select one: a. total cost divided by units of inputs b....
A firm's marginal cost represents:
Select one:
a. total cost divided by units of inputs
b. total cost divided by units of output
c. both a and b
d. the additional cost of producing one more unit of
output
Suppose the market price is $10 (this is also the firm's marginal cost), a firm's quantity...
Suppose the market price is $10 (this is also the firm's
marginal cost), a firm's quantity sold is 11, and the average total
cost for the firm at that price is $7. What is the firm's
profit?
$330
$0
$110
$33
The firm would not produce at this quantity because it does not
maximize the firm's profit.
The firm's demand is as follows: Total variable costs are: Price Quantity Quantity TVC $18 2...
The firm's demand is as follows:
Total variable costs are:
Price
Quantity
Quantity
TVC
$18
2
2
$15
16
3
3
21
15
4
4
27
14
5
5
32
13
6
6
37
12
7
7
44
10
8
8
52
Fixed costs are $15
at all quantities
1. What is the Marginal Revenue at a quantity of 5?
2, What is the Marginal Cost at a quantity of 7?
3. Using the MR-MC rule, what is the profit...
The firm's demand is as follows: Total variable costs are: Price Quantity Quantity TVC $18 2...
The firm's demand is as follows:
Total variable costs are:
Price
Quantity
Quantity
TVC
$18
2
2
$15
16
3
3
21
15
4
4
27
14
5
5
32
13
6
6
37
12
7
7
44
10
8
8
52
Fixed costs are $15
at all quantities
1. What is the Marginal Revenue at a quantity of 5?
2, What is the Marginal Cost at a quantity of 7?
3. Using the MR-MC rule, what is the profit...
The firm's demand is as follows: Total variable costs are: Price Quantity Quantity TVC $18 2...
The firm's demand is as follows:
Total variable costs are:
Price
Quantity
Quantity
TVC
$18
2
2
$15
16
3
3
21
15
4
4
27
14
5
5
32
13
6
6
37
12
7
7
44
10
8
8
52
Fixed costs are $15
at all quantities
QUESTION 1
What is the Marginal Revenue at a quantity of 5?
QUESTION 2
What is the Marginal Cost at a quantity of 7?
QUESTION 3
Using the MR-MC rule, what...
Find the EOQ, the total annual cost associated with the economic order quantity, the reorder point,...
Find the EOQ, the total annual cost associated with the economic
order quantity, the reorder point, number of orders per year and
the time between orders.
Annual Demand
15,600 units
Weeks Operating
52 weeks/year
Set up Cost
$60/order
Holding rate
20%
Unit cost
$80 /unit
Lead-Time
5 weeks
Customer # Order Size (Quantity) Total Cost of Order 10211 28 1631 10212 31 1923 10213...
Customer #
Order Size (Quantity)
Total Cost of Order
10211
28
1631
10212
31
1923
10213
43
2070
10214
47
2392
10215
32
1886
10216
43
2307
10217
25
1486
10218
46
2448
10219
41
2210
10220
48
2401
10221
29
1860
10222
32
1786
10223
49
2485
10224
44
2203
10225
33
1855
10226
46
2380
10227
42
2102
10228
31
1683
10229
30
1706
10230
35
1955
10231
34
1992
10232
33
1926
10233
27
1852
10234
32...
For a perfectly competitive firm, total cost TC=300Q-20Q2+0.5Q3 a. Determine the firm's marginal cost(MC) and Average...
For a perfectly competitive firm, total cost
TC=300Q-20Q2+0.5Q3
a. Determine the firm's marginal cost(MC) and Average Total
Cost(ATC):
b. Determine the firm's long-run profit maximizing output and
price:
c.If Price=146, what quantity will the perfect competitor
produce at this price?
d. If Price=146, what is the perfect competitor's economic
profit?
Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...
Quantity
Total Cost
Total Fixed Cost
Total Variable Cost
Average Fixed Cost
Average Total Cost
Average Variable Cost
Marginal Cost
0
30
1
75
2
150
3
255
4
380
5
525
6
680
7
840
8
1010
9
1200
Given the quantity and total cost, calculate for total fixed
cost, total variable cost, average fixed cost, average total cost,
average variable cost, and marginal cost.
Excel formulas would be nice but not required.
Using the EOQ model, if a firm's order quantity is 500 units and its annual holding...
Using the EOQ model, if a firm's order quantity is 500 units
and its annual holding cost is greater than its annual setup cost,
then what can we say about the optimal order quantity?
A. Optimal order quantity = 500 units
B. Optimal order quantity < 500 units
C. Optimal order quantity > 500 units
D. Not enough information is given to answer the question
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