1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

Question

Question

1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200.

Workers	Output	Marginal Product	Total Cost	Average Total Cost	Marginal Cost
0	0	---		---	---
1	20
2	50
3	90
4	120
5	140
6	150
7	155

a. Using the information above, calculate the marginal product, total cost, average total cost, and marginal cost. Identify the output level at minimum average total cost for Toys Create Corp.

b. Construct the marginal-cost and average-total-cost curves for Toys Create Corp. Using your own words, explain diminishing marginal product and explain when does Toys Create Corp. experience diminishing marginal product using the cost curves below.

c. A firm’s average total cost (ATC) curve is different depending on the time frame. Explain the reasons leading to a different ATC curve in the short run and in the long run and how firms are identified as experiencing economies of scale, constant return to scale, and diseconomies of scale.

microeconomic

Add a comment Improve this question Transcribed image text

Answer 1

Similar Homework Help Questions

8:587 18:26:20 Exit D 24. The figure below shows short-run average total cost curves for a...

8:587 18:26:20 Exit D 24. The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. Price ATC, ATC ATC Q, Q.QQQQQ Quantity Refer to the figure above. Between the output quantity QA and QC, the long-run average total cost curve of the firm exhibits constant returns to scale diminishing marginal product diseconomies of scale economies of scale
22. Which of the following is true for a firm that enjoys economies of scale? a. Marginal cost is increasing as output i...

22. Which of the following is true for a firm that enjoys economies of scale? a. Marginal cost is increasing as output increases. b. Average total cost is falling as output increases. c. Marginal cost is constant as output increases. d. Marginal revenue is falling as output increases. 23. The figure below shows short-run average total cost curves for a firm under four different production technologies. Assume that there are only four different technologies that the firm could use. Refer...
A worker costs $60 a day, and the firm has fixed costs of $120.

In the following table, complete the marginal product column Workers Output Marginal ProductTotal Cost M arginal Cost Average Total Cost OU AWN A worker costs $60 a day, and the firm has fixed costs of $120. Use this information to fill in the column for total cost in the previous table. Fill in the column for marginal cost in the previous table. Fill in the column for average total cost in the previous table. Which of the following statements are true about the patterns found...

Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average...

Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average variable cost e.) Diseconomies of scale f.) Economies of scale 9.) Fixed costs m.) Optimal output rule h.) Law of diminishing marginal productivity n.) Profit i.) Long run 0.) Short run 1.) Marginal cost p.) Total cost k.) Marginal product q.) Total product 1.) Marginal revenue r.) Variable costs 1.) Total revenue minus total cost 2.) The sum of total fixed and total variable...
(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm...

(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0...

Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0 0 200 0 200 1 20 20 200 100 300 300 5.00 2 50 30 200 200 400 200 3.33 3 90 40 200 300 500 166.67 2.50 4 120 30 200 400 600 150 3.33 5 140 20 200 500 700 140 5.00 6 150 10 200 600 800 133.33 10.00 7 155 5 200 700 900 128.57 20.00 a. Fill in the...

Assume that a firm uses capital as a fixed factor of production and uses labor as...

Assume that a firm uses capital as a fixed factor of production and uses labor as a variable factor. The marginal product of labor at first increases and then decreases with the amount of labor. (a) Using a correctly labeled graph, draw and identify the form’s average total cost curve (ATC), average variable cost curve (AVC), and marginal cost curve (MC). d) Draw a long-run average total cost curve that has a region of economies of scale followed by a...
Marginal cost is defined as: the change in total costs from producing one more unit of output. the change in fixed c...

Marginal cost is defined as: the change in total costs from producing one more unit of output. the change in fixed cost from producing one more unit of output. total cost divided by total output. total variable cost divided by total output. The marginal cost curve often decreases at first and then starts to increase. This is explained by: the law of diminishing returns. economies of scale. increasing ATC. From the information given in the following table, calculate the marginal...
e total cost 19. For a certain firm, the 10th unit of output marginal cost of...

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...

Part 1: When a firm operates with economies of scale, average production costs: 1) rise when...

Part 1: When a firm operates with economies of scale, average production costs: 1) rise when the firm gets larger. 2) fall as the firm gets larger. 3) fall as the firm gets smaller. 4) are unaffected by firm size. Part 2: “U-shaped” long-run average cost curves show that as firms get larger, they usually experience: 1) economies of scale. 2) constant returns to scale. 3) diseconomies of scale. 4) a, b, and c, in that order. Part 3: This...

1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

Homework Answers

Request Answer!

Add Answer to:
1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

Post as a guest

Earn Coins

8:587 18:26:20 Exit D 24. The figure below shows short-run average total cost curves for a...

22. Which of the following is true for a firm that enjoys economies of scale? a. Marginal cost is increasing as output i...

A worker costs $60 a day, and the firm has fixed costs of $120.

Matching (15 pts) a.) Average fixed costs b.) Average product c.) Average total cost d.) Average...

(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm...

Workers Output Marginal Product Fixed cost Variable cost Total Cost Average Total cost Marginal cost 0...

Assume that a firm uses capital as a fixed factor of production and uses labor as...

Marginal cost is defined as: the change in total costs from producing one more unit of output. the change in fixed c...

e total cost 19. For a certain firm, the 10th unit of output marginal cost of...

Part 1: When a firm operates with economies of scale, average production costs: 1) rise when...

1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

Homework Answers

Request Answer!

Add Answer to: 1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20

Post as a guest

Earn Coins

Add Answer to:
1. Toys Create Corp., produce puzzles and sell to consumers. A worker costs MYR 100 a day, and the firm has fixed costs of MYR 200. Workers Output Marginal Product Total Cost Average Total Cost Marginal Cost 0 0 --- --- --- 1 20