A firm is producing 25,000 units of output at a total cost of $933,000. The firm's average variable cost is $32.5 per unit.

What is the firm's total fixed cost and average variable costs?

What is the difference between variable and fixed costs in the context of total cost and per unit costs? Provide examples. short answer

Labor is typically 70 percent of the total cost of getting a product to market. Is that the only reason an entrepreneur should pay attention to labor employment? Explain why.

The table below contains the demand and price and total cost data for the production of x widgets. Here p is the price (in dollars) of a widget for an annual demand of x widgets, and C is the annual total cost (in dollars) of producing x widgets per year.

Annual demand Price

10 147

20 132

30 125

40 128

50 113

60 97

70 85

80 82

90 79

100 53

Use the given data to find a regression line that best fits the price-demand data for price p in dollars as a function of the demand x widgets. Here, price is the dependent variable, and demand is the independent variable. Find the regression function for price, and write it as p ( x ) = m x + b.Find the regression function for price, and write it as p ( x ) = m x + b.

• Does it look like the regression line models the data well? Why or why not?
• Use the regression function you found to estimate p ( x ) for specific values of x. Give the real-world interpretation of the result of such computations in complete sentences. Be sure to include units.
• Find the value of x would make p ( x ) = 0. Give the real-world interpretation of the result of the computation in complete sentences. Be sure to include units.

Complete the following cost and revenue schedule

Average

Quantity           Total          Marginal            Total               Marginal           Total

Price       Demanded       Revenue        Revenue             Cost                Cost                  Cost

$20                   0                                                               $8

$18                   1                                                             $14

$16                   2                                                             $22

$14                   3                                                             $32

$12                   4                                                             $44

$10                   5                                                             $58

   $8                  6                                                             $74

   $6                  7                                                             $92

   $4                  8                                                          $112

   $2                  9                                                          $147

a. Graph the demand, MR, and MC curves.

b. At what rate of output are profits maximized within this range?

c. What are the values of MR and MC at the profit-maximizing rate of output?

d. What are total profits at that output rate?

e. If a competitive industry confronted the same demand and costs, how much output is produced in the short run?

f. What would happen to long-run price in perfect competition?

A monopolist operates in a market of demand q = 10−p with a total cost of C(Q, e) = (3/2)e^2 +(5−e)Q, where e represents effort.

a. Calculate the price, effort, quantity, and welfare that results from an unregulated monopoly.

b. A regulator establishes that price must equal marginal cost. The monopolist is free to select the level of effort. Calculate price, effort, quantity, and welfare in this situation.

c. A regulator decides to force price equal to marginal cost and mandates that monopolist must choose the level of effort that minimizes costs for a given level of quantity. Calculate price, effort, quantity, and welfare in this new situation.

d. Based on your answer to the previous parts, should a regulator focus on allocative efficiency and ignore productive efficiency?

show the fixed cost are fixed in total but is variable on a per unit basis and that variable in total but is fixed on a per unit basis

1. If total cost is given by TC = 500+ 10Q − 10Q2 + 0.5Q3 , then average variable cost is minimized at __________ units of output.

a. 20 b. 10 c. 50 d. 5 e. 100

12. If output is produced according to Q = K0.5 + 3L0.5, then this production process exhibits:

a. increasing returns to scale b. constant returns to scale c. decreasing returns to scale d. first decreasing and then increasing returns to scale e. first increasing and then decreasing returns to scale

13. Company XYZ has zero fixed costs and its average variable cost of cases is given by AVC = 5Q + 600, the marginal cost at an output level of 15 units is:

a. $625 b. $500 c. $750 d. $600 e. $550

14. Given a cost function C(Q) = 400 + 18Q + 6Q2 , what is the marginal cost function?

a. 18 + 12Q. b. 18 + 12Q2. c. 400 + 6Q2. d. 18Q + 6Q2