Question

A c E. value by the specified quantity then the resulting value is the amount of forced costs ly) and (2) B ) and ly) only ) and (2) only D y) and only (x) only Exhibit Variable Costs Costs Fixed Quantity Total Casts 2. Use Exhibit 1. Which of the following is (are) correct? (x) The firm's fixed costs are more than $40,000 and the average foxed cost of 4.000 units is less than $11 but more than $10 per unit of output. ly) The total cost of producing 4.000 units of output is more than $150,000 and the average total cost for 4,000 units is less than $30 per unit but more than $36 per unit (2) Variable cost of producing 3.000 units of output is more than 572,000 and the average variable cost for 3.000 units is less than $20 per unit A (x) ly) and (2) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E y ) only $30.000 $55.000 1.0DD 2,000 3.000 4.000 597,000 $117.000 $110,000 5,000 $192.000 3. Use Exhibit 1. Which of the following statements is (are) correct? (x) If the firm increased production from 2,000 to 3,000 units, then variable costs increase by $20,000 ly) The marginal cost of producing the five-thousandth (5,000th) unit is $40. (z) If the firm increased production from 3,000 units to 4,000 units, then total costs increase by more than $32,000 but less than $34,000 A. (x). (y) and (z) B. (x) and (y) only C. (x) and (z) only D. ly) and (z) only E. (x) only 4 At Annie's Apple Pies, the total cost of producing 800 apple pies is 56,400. The variable cost of producing 800

Answer 1

The answers to question 2 and 3 are as follows:

The completed table is attached below, where fixed cost is calculated using the formula Total cost - variable cost. For quantity = 2000, both total cost and variable costs are given, so fixed cost = 97000 - 55000 = $42000.

Answer 2. Option A is right choice that is x, y and z are all correct.

Answer 3. Option B is right choice that is x and y only are correct.

Exhibt 1 Fixed cost Cantity Vausblecent I total cost 1000 ܘܘܩܐܟ 1000 72000 97000 11 700 3000 4000 5000 3000 కకాలం 75000 loooo I Soooo 42000 42000 4.000 42000 152000 1 92.00 (8) Firm's fixed cat = 42000 to more than 40000 AFC g 4000 units = 42000 = 1005 which is less than $11 but more than $10 peu unit of output des ܛ ܢܿ (&) ܩܝܐ (Y) Total cost g 4000 units = $152000 which is more than $150000 and everye total cost for 4000 unit – AFC (4000) + N (4000) = 42000 + 160cm 4000 4000 - (0.5 + 27.5 = $38 which is less than $39 but more than $36 so (4) is also correct (2) Variable cast a 3000 units =$75000 which is more than $12000 Arc (3000) units is 75000 = 25 which is less than $26 Peu unit So (2) is also correct, so opron A is correct తెలంగా

o & (x) ? If If 3000 using the table above firm increased Production units variable cast increase firm increase from 2000 by (1500 $ 20000 ás increase by (15000 - 55000) X is coweet ♡ The margrand cast g Producing 5000 to cost . Change in change in Quantity - Quente 150000- 10000 SDOO - 4000 5000-4000 - 40000 40 1OOD so (M) is comment (2) If fim increased production frane 3000 to 4000 units then total cost increase by (152000 - 117000) a $ 35000 which is more than both $32000 and $34000 so (2) is incorrect - so oftion that is B is correct (x) and (1) only