4. Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a...
4. Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a year. The variable costs are: 500-Q2 (Q is in hundreds) The firm pays $500 a year in various taxes. The market price of these DVDS is $40. Beyonce has many fans. Show your work/thought process: a. Should the firm shut down in the short run? Explain. If the firm's fixed costs decreased from $10,000 to $8,000, would the firm shut down in the b....
You are given the following cost data: Total fixed costs are $30. q TVC 0 0 1 30 2 60 3 105 4 165 5 255 6 375 If the price of output is $60, how many units of output will this firm produce (assuming the firm produces in the short run, in a competitive market)? The firm will produce nothing units of output because this is where price equals ▼ average variable cost marginal cost average fixed cost ....
11. A firm sells 30 units of its product at a price of $5 per unit. It incurs a fixed cost of $100 and a variable cost of $20. The firm's profit is ________. a. $50 b. $100 c. $150 d. $30 15. A firm is seeing a $500 loss in the short run. The fixed cost of operation for this firm is $1,000. What is the best decision for this firm in the short run? a. This firm should...
Question 4: Novotel Lotus provides catered meals, and the catered meals industry is perfectly competitive. Novotel Lotus machinery costs $100 per day and is the only fixed input. The firm's variable cost consists of the wages paid to the cooks and the food ingredients. The variable cost per day associated with each level of output is given in the accompanying table. Quantity of meals VC TC MC AVC ATC $200 $300 $480 $700 $1000 4.1. Calculate the total cost, the...
4. Your dad recently handed you the small family farm. Your total costs depend on the quantity of soybean bushels that you produce: TC = 20 + 2q +9? where q denotes bushels of soybeans (the lower case q indicates the quantity that you are producing). The demand and supply of soybeans in the world market are the following: lg = 20 – P Qs = 5 + <P where Q denotes total bushels of soybeans, in millions (the upper...
Question 11 Economic profit equals total revenue minus total costs including explicit fixed costs, explicit variable costs, implicit fixed costs, and implicit variable costs. True False Question 12 4 pt If Economic profit equals zero, then the firm should shut down in the short run and go out of business in the long run. True e False The period of time long enough to allow a firm to vary all of its inputs, to adopt new technology, and to increase...
Incorrect uestion 19 0/4 pts Jasu has determined that its profit-maximizing quantity is 10,000 donuts per year. Jasu earns $12,000 in revenue from the sale. He has two costs. First, he pays $16,000 in annual rental payments for its five-year lease on its store. Second Jasu incurs an additional cost of $5,000 for ingredients. Should Jasu shut down in the short run? No, because he can cover all of his variable costs No, because is earning positive economic profit. Yes,...
Short-Run Market Supply. New England Textiles, Inc., is a medium-sized manufacturer of blue denim that sells in a perfectly competitive market. Given $25,000 in fixed costs, the total cost function for this product is described by TC $25,000 $1Q S0.000008 Q Mc= aTCaQ = $1 + $0.00001 6Q where Q is square yards of blue denim produced per month. Assume that MC> AVC at every point along the firm's marginal cost curve, and that total costs include a normal profit....
Purrfect sells deluxe cat toys. The deluxe cat toy market is highly competitive, with toys currently selling for ¥10,000 each. Purrfect's total and marginal cost curves are: TC = 200000 + 40? MC = 84 where q is the number of toys manufactured each year. (a) Write down Purrfect's revenue function. Write down Purrfect's profit function. (b) Calculate Purrfect's profit-maximizing quantity. Is the firm earning a profit? (c) Analyze Purrfect's position in terms of the shutdown condition. Should Purrfect operate...
e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production of the 10th it fo r of outputut the firm produse marinat revenue of land them the firm's profi not the 100th unit of t h e firm's average total costs C. Firm's profit-maximize ve futut is less than 100 units. d. production of the 101st unit of output the lost unit of output must increase the firm's...