Output, q | Total Cost, $ |
0 | 15 |
1 | 25 |
2 | 33 |
3 | 40 |
4 | 48 |
5 | 58 |
6 | 70 |
A. Please refer to the cost table above. What is the total fixed cost of producing two units of output?
B. Please refer to the cost table above. What is the average total cost of producing four units of output?
C. Please refer to the cost table above. What is the marginal
cost of producing the fourth unit of output?
D. Please refer to the cost table above. Assume that the enterprise
uses only labor and capital to produce output
and that capital is the fixed input that
generates total fixed costs. Labor is accountable for all variable
costs.
If the enterprise employed three units of labor
to produce four units of output, what would be the wage rate
per unit of labor? (Hint: at first this may seem
like there is not enough information, but remember how to
break total cost down into fixed and variable
components.)
In: Economics
A monopolist faces the following demand and cost schedules
Price Quantity Total cost $20 7 $36 19 8 45 18 9 54 17 10 63 16 11 72 15 12 81
a. How much output should the monopolist produce? b. What price should the firm charge? c. What is the maximum amount of profit that this firm can earn?
In: Economics
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q = 200 - 2P MR = 100 - Q TC = 5Q MC = 5 a. What is the profit maximizing level of output? (10 pts.) b. What is the profit maximizing price? (8 pts.) c. How much profit does the monopolist earn? (10 pts.)Immersive Reader (28 Points)
In: Economics
1. Average Cost for Producing Microwaves
Let the total cost function C(x) be defined as follows.
C(x) = 0.0003x3 − 0.02x2 + 103x + 3,600
Find the average cost function C.
C(x) =
Find the marginal average cost function C '.
C '(x) =
2. Marginal Revenue for Producing Loudspeakers
The management of Acrosonic plans to market the ElectroStat, an electrostatic speaker system. The marketing department has determined that the demand for these speakers is represented by the following function, where p denotes the speaker's unit price (in dollars) and x denotes the quantity demanded. Find the following functions (in dollars), find the value (in dollars) and interpret your results.
p = −0.02x + 890 (0 ≤ x ≤ 20,000)
(a)
Find the revenue function R.
R(x) =
(b)
Find the marginal revenue function R'(x).
R'(x) =
(c)
Compute the following value.
R'(8,200) =
Interpret your results.
When the level of production is units, the production of the next speaker system will bring an additional revenue of dollars.
3.Marginal Cost, Revenus, and Profit for Producing LCD TVs
A company manufactures a series of 20-in. flat-tube LCD televisions. The quantity x of these sets demanded each week is related to the wholesale unit price p by the following equation.
p = −0.007x + 190
The weekly total cost (in dollars) incurred by Pulsar for producing x sets is represented by the following equation. Find the following functions (in dollars) and compute the following values.
C(x) = 0.000001x3 − 0.02x2 + 140x + 75,000
(a)
Find the revenue function R.
R(x) =
Find the profit function P.
P(x) =
(b)
Find the marginal cost function C'.
C'(x) =
Find the marginal revenue function R'.
R'(x) =
Find the marginal profit function P'.
P'(x) =
(c)
Compute the following values. (Round your answers to two decimal places.)
C'(1,500)=R'(1,500)=P'(1,500)=
In: Math
The manufacturing costs of Ackerman Industries for the first three months of the year follow:
| Particulars | Total cost | Units produced |
| January | $1,900,000 | 20,000 units |
| February | 2,250,000 | 27,000 |
| March | 2,400,000 | 30,000 |
Using the high low method,Determine (a) the variable cost per unit and (b) the total fixed cost
In: Accounting
The records of ABC Company showed the following:
| Units | Unit Cost | Total Cost | ||
| January 1 | Beginning | 10,000 | 60 | 600,000 |
| April 1 | Purchase | 18,000 | 50 | 900,000 |
| October 1 | Purchase | 22,000 | 40 | 880,000 |
The physical inventory reveals 15,000 units on hand on December
31.
Compute the cost of ending inventory and cost of sales using:
| Inventory Cost Flow | Ending Inventory | Cost of Goods Sold (COGS) |
| First in, first out (FIFO) | ||
| Weighted Average | ||
| Last in, first out (LIFO) |
In: Accounting
USE OF AVERAGE COST METHOD
| Unit cost / | Balance | ||||
| Date | Explanation | Units | Price | Total Costs | in units |
| 02-Jun | Purchase | 225 | $ 60 | $ 13,500 | 225 |
| 03-Jun | Purchase | 350 | $ 80 | $ 28,000 | 575 |
| 10-Jun | Sale | 300 | $ 100 | $ 30,000 | 275 |
| 15-Jun | Purchase | 900 | $ 85 | $ 76,500 | 1175 |
| 25-Jun | Sales | 325 | $ 110 | $ 35,750 | 850 |
|
What is total value of ending inventory after the purchase of June 3rd? $ Answer |
|||||
|
What is the unit cost of ending inventory after the June 15th purchase? $ Answer |
|||||
|
What is the total cost of goods sold at the end of June? $ Answer |
|||||
|
What is the ending inventory in units at the end of June? Answer |
|||||
|
What is the ending inventory unit price at the end of June? $ Answer |
|||||
|
What is the total $ value of ending inventory at the end of June? $Answer |
|||||
In: Accounting
james inc. charges $2,800 for its hand-crafted guitars. The cost function that describes the total cost, C, as a function of the guitars crafted and sold, x, is:
C(x) = 2000x + 4x 2 + 30000
a) Formulate the profit function, P(x).
b) How many game boards must be crafted and sold in order to maximize the total profit?
c) What is the maximum profit?
d) How many game boards must be crafted and sold in order to break even?
In: Accounting
|
Expected Monthly Cost |
Maximum WTP for Insurance |
Total Expected Monthly Cost |
||
|
Type of Person |
Number of People |
($) |
($) |
($) |
|
Very Healthy |
450 |
100 |
110 |
45,000 |
|
Healthy |
250 |
550 |
633 |
137,500 |
|
Unhealthy |
100 |
650 |
910 |
65,000 |
|
Very Unhealthy |
50 |
5,000 |
7,500 |
250,000 |
|
Total |
850 |
497,500 |
How could the model you just examined be extended to more than four types of health insurance consumers?
10. What if the insurance company does incur administrative costs? How would this affect the expected costs of running the insurance policy, the premiums charged, and the consumer surplus of those who buy insurance? (Provide realistic estimates of administrative costs and your reasons).
11. How would the results of this model change if the insurance companies were not required to provide full insurance to everyone and could offer multiple policies ( including one with either a co-pay or deductible?
In: Economics
Assume the following unit‑cost data
are for a purely competitive producer:
|
Total Product |
Average fixed cost |
Average variable cost |
Average total cost |
Marginal cost |
||||
|
0 1 2 3 4 5 6 7 8 9 10 |
$60.00 30.00 20.00 15.00 12.00 10.00 8.57 7.50 6.67 6.00 |
$45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 46.50 |
$105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 50.00 52.50 |
$45 40 35 30 35 40 45 55 65 75 |
||||
In: Economics