Average cost (cents per copy) 10 8 6 A 2 0 a. 3.7 b. 5 c. 4000 ATC₁ d. 4 e. 16 f. 8.5 g. 16000 ss 4 ATC2 ATC3 ATCA ***** 8 10 Quantity (thousands of copies per day) What is Dustin's long-run average cost if the output is 3,000 copies per day? 單選: 6

Average cost (cents per copy) 10 8 6 A 2 0 a. 3.7 b. 5 c. 4000 ATC₁ d. 4 e. 16 f. 8.5 g. 16000 ss 4 ATC2 ATC3 ATCA ***** 8 10 Quantity (thousands of copies per day) What is Dustin's long-run average cost if the output is 3,000 copies per day? 單選: 6

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.4: Costs In The Short Run And In The Long Run

Problem 4QQ

See similar textbooks

Related questions

Q: (a) Suppose the natural rate of unemployment for the economy is 5 percent and the economy is…

A: The objective of the first part of the question is to understand the impact of unemployment rates on…

Q: If marginal revenue is $9, how much output will the firm produce, and how much profit will it make?…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of (a)…

A: Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies used by multinational…

Q: A company has introduced a process improvement that reduces processing time for each unit, so that…

A: Productivity in a manufacturing context is often measured by the output per unit of input, which…

Q: Answer the Constrained Optimization: Cobb-Douglas Production Function:State the optimization problem…

A: The objective of the question is to state the optimization problem of the firm given the…

Q: a) The current machine should be replaced [[(Click to select) b) The equivalent AW for the next…

A: The concept of equivalent annual worth (AW) is a way of comparing the annual cash flows of different…

Q: Assume the relationship between the growth of a fish population and the population size can be…

A: The objective of the question is to find the marginal benefit of smaller population sizes. The…

Q: Suppose that demand for caustic soda in Freedonia is given by D(P) = 10000 - 2P, where the quantity…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: You work for a company that is being accused of monopoly behavior, given its large size. Comparisons…

A: The given problem highlights the three SRAC curves that are provided for the three periods including…

Q: What is fiat money? Is the U.S. dollar fiat money? Are cryptocurrencies fiat money? What counts as…

A: Fiat money is a type of currency that a government has declared to be legal tender, but it is not…

Q: You have been hired by Kia as manager for its Pakistan operations. Assume following is the short-run…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: A company has two manufacturing plants which manufacture the same item. Suppose the cost function is…

A: The cost function for the firm is given asThe price equation is given as The profit is obtained by…

Q: Most firms in the apparel and footwear industries choose to outsource production to countries where…

A: Intra-firm trade denotes the exchange of goods or services between entities that are part of the…

Q: 5. On March 1, Bank extends a line of credit to Farmer. Farmer grants Bank a security interest in…

A: Financial market:It is a market where there is buying and selling of financial securities. It…

Q: 4. Consider a market where inverse demand is given by P=630-3Q. Marginal costs are symmetric at 90.…

A: In the context of oligopoly markets, two prominent equilibrium concepts are Cournot-Nash and…

Q: How does asymmetric information about consumer types affect market outcomes in a scenario where…

A: Assessing Impacts of Information AsymmetryAsymmetric information in markets refers to situations…

Q: Complete the following Exercises. Use complete sentences. Consider two firms who each release 10…

A: The marginal cost of abatement is a change in the cost of pollution abatement when one additional…

Q: What is the aggregate of the gross balances of primary income of all resident institutional units…

A: The inquiry was posed to us to identify the economic term that addresses the total of all primary…

Q: Which statements are true regarding economies of scale? Choose one or more: A. Economies of scale…

A: The objective of the question is to identify the correct statements about economies of scale.

Q: Suppose that the government spending, G, increases. Using your answers in (1b), determine and…

A: Production function:Production is a function of land labor capital and entrepreneurship. It…

Q: Show the likely effects on price- and/or wage- setting behaviour as reflected in the WS/PS diagram…

A: Labor economics delves into the intricacies of the job market, scrutinizing aspects like employment,…

Q: In 1998, Brazil had a per capita GDP of about $4,500, compared to per capita GDP of about $28,000 in…

A: A production function signifies a relationship between inputs and outputs. The Cobb-Douglas…

Q: QUESTION 15 Consider the following information for a simultaneous move game: Two discount stores…

A: In game theory, the Nash equilibrium, named after the mathematician John Nash, is the most common…

Q: Suppose you are an analyst for the Coca-Cola Company. An individuals' inverse demand for Coca-Cola…

A: The process of adjusting production or operational activities to achieve the highest possible profit…

Q: A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers.…

A: The concept of equivalent annual worth (AW) is a way of comparing the annual cash flows of different…

Q: (a) Calculate the price elasticity of demand when * = 305. η = 305 1056-2(305) therefore the demand…

A: Price elasticity of demand measures how much a consumer will change the quantity demanded of a good…

Q: According to the simple monetary model, if the growth rate of real income is higher in NZ, then…

A: The simple monetary model is a theoretical framework in international economics that analyzes…

Q: Imagine that you are at dinner with an acquaintance and that you are each independently choosing…

A: Nash еquilibrium:It is a sub-topic of gamе history in which players play games and use strategy and…

Q: Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets.…

A: Marginal Cost (MC): The extra cost incurred when producing one additional unit of a good or…

Q: Question 22: Kathy gets utility from three things: the number of flowers in her local park (F),…

A: Kathy's utility comes from three goods: the number of flowers in the park (F), reading books in the…

Q: Use the photo at exercise 14 to solve the problem below With the Firm Y response function…

A: Duopoly refers to the type of market where only two firms exist in the entire market that produce…

Q: Economic theory suggests that in the long run, since money is neutral, the real exchange rate will…

A: Informal approach to determine purchasing power parity (PPP) between two currencies is the Big Mac…

Q: If a technology displays increasing returns to scale, then: a. The ATC curve is increasing at an…

A: Returns to scale refer to how the output of a production process changes as all inputs are increased…

Q: A profit - maximizing firm in a competitive market is currently producing 100 units of output. It…

A: In case of perfect competition there are large number of buyers and sellers. The firms sell…

Q: Suppose the Bank of Canada orders a contractionary monetary policy. Explain briefly what will happen…

A: contractionary monetary policy is the policy of a central bank to reduce the money supply in the…

Q: - Suppose that we need to develop a model to help us to allocate a resource between two time…

A: The objective of the question is to find the marginal user cost in a two-period model where the…

Q: Kyra is the owner and president of Borealis Fit, a martial arts studio with 15 employees. The centre…

A: Group insurance is a type of insurance that covers a group of people who share a common…

Q: Federal Funds Rate 5 3 ندا 2 - 100 S Reserves The figure above shows the supply and demand curves of…

A: The correct answer is that the supply curve of reserves would move to the right, causing the federal…

Q: 8)Consider a market in which 5 companies operate, whose marginal and average costs are equal to c.…

A: Market:It is a placе whеrе thеrе is buying and sеlling of goods and sеrvicеs. Somе buyеrs and…

Q: Qs 15: Which one of the following statement regarding Factor of Production is correct? (a) It is the…

A: The objective of the question is to identify the correct statement regarding the Factor of…

Q: Que 12: Providing social security, especially to those working in unorganised sector, is an…

A: Inclusive growth refers to an economic development strategy that benefits all segments of society,…

Q: The labor supply curve shift following a decrease in the capital stock is a result of A.…

A: Exploring the Labor Supply Curve Shift Dynamics:The labor supply curve represents the relationship…

Q: When answering this question, don't round up your answer. Suppose that ever time a commercial bank…

A: Money multiplier is the concept in monetary economics where the maximum amount of money is…

Q: Interest Rate iA 0 Ms Quantity of Money MD (Y, P)

A: (a) Calculating M1 and M2M1: This includes the most liquid forms of money:Currency: $95Checkable…

Q: Cost of producing a private good Production Total cost level Fixed price Total variable cost Average…

A: Fixed Costs:Definition: Costs that do not vary with the level of production or sales. They remain…

Q: 13-11 A machine has a first cost of $24,000. Its market value declines by 20% annually. The repair…

A: The objective of this question is to find the minimum Equivalent Uniform Annual Cost (EUAC) for a…

Q: 70 b. $1,000. c. $2,000. d. $4,000. 5-8Ngu$ 8 40 -MC-ATC Demand MR 50 100 150 200 250 300 350 400…

A: Monopoly is a market structure in which there is a single seller who has monopoly power over the…

Q: How do i draw a kinked demand curve to represent Tesco's success in an oligopolistic market

A: In an oligopolistic market, a kinked demand curve is a graphical representation that reflects the…

Q: QUESTION 7 Consider the following information: Q = 12 L +31 K PL-37, PK-5, P=117 and C-3,274 What is…

A: Note: Since you have posted multiple questions, we will provide the solution only to the first…

Q: In 2013, In suffered from an unemployment rate of 25% and huge amounts of debt. suffered under…

A: In 2013 Spain suffered from an unemployment rate of 25% and huge amounts of debts.2. Greece suffered…

Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

Average cost (cents per copy)
9
10
2
單選:
0
a. 3.7
b. 5
c. 4000 -
d. 4
e. 16
f. 8.5
g. 16000
ATC₁
2
What is Dustin's long-run average cost if the output is 3,000 copies per day?
6
8
10
Quantity (thousands of copies per day)
ATC2 ATC3 ATCA
4

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Long run Average Cost:

VIEW

Step 2: Explanation:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
swered Costs per Unit (dollars) 1000 900 800 700 600 500 400 300 200 100 0 4 Average total cost B Marginal cost Output (units per day) Average variable cost Average fixed cost 22 24 How many units of output should be produced per day if the price of the product is $600/unit? (provide an approximate answer in whole numbers)
The total cost (in dollars) of producing x food processors is C(x) = 1600 + 40x-0.1x². (A) Find the exact cost of producing the 61st food processor. (B) Use the marginal cost to approximate the cost of producing the 61st food processor. CHEO (A) The exact cost of producing the 61st food processor is $ (B) Using the marginal cost, the approximate cost of producing the 61st food processor is $
Melvin manufactures a single product. Total cost per unit is $70 when production is 100 units per week, and $62.50 when production is 160 units per week. What are the total fixed costs per week?
(a) Find the marginal cost function C'(x). C'(x) Use it to estimate how fast the cost is increasing when x = 60,000. | per game system Compare this with the exact cost of producing the 60,001st game system. The cost is increasing at the rate of $ | game system is $| the estimated cost of producing the 60,001st game system found using the marginal cost function. | per game system. The exact cost of producing the 60,001st J. The actual cost of producing the 60,001st game system is --Select-- (b) Find the average cost function C(x) and the average cost to produce the first 60,000 game systems. (Round your answer to the nearest cent.) C(x) C(60,000) - $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 60,000 game systems.
Calculate explicit cost given:- Accounting profit = $6600 Total revenue= $10,000
It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake. A cupcake issold for $4.90 each.(i) Make a table showing the total cost and the revenue obtained from producing 20,40,60,80 and 100 cupcakes.(ii) Write algebraic expressions representing the cost C and the revenue R as functions of the number of cupcakes X produced and number of cupcakes X sold respectively.(iii) Graph both functions on the same coordinate axes and from your graph determine the cordinate at which cost equals revenue.
Please I need help on the math question I don't ge it Suppose that the monthly cost, in dollars, of producing x chairs is C(x)=0.005x3+0.07x2+15x+600, and currently 35 chairs are produced monthly. a) What is the current monthly cost? b) What is the marginal cost when x=35? c) Use the result from part (b) to estimate the monthly cost of increasing production to 37 chairs per month. d) What would be the actual additional monthly cost of increasing production to 37 chairs monthly?
Eliza works in a diner and creates luscious pies. She has the following average total cost schedule (see the picture below): H Quantity of Pies Produced 600 601 Average Total Cost in HongKong Dollars 300 301 The current level of production of Eliza is 600 (six-hundred) pies, which all have been sold. A customer desperately texted you that they wanted to buy one of her pies. They offer 550 HK$. Should Eliza accept the offer? If not, why?
Assume that it costs a company approximately C(x) = 400,000 + 160x + 0.002x2 dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. Use it to estimate how fast the cost is increasing when x = 10,000. $ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ per smartphone. The exact cost of producing the 10,001st smartphone is $ Thus, there is a difference of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) = C(10,000) = $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. The marginal cost from (a) is --Select--- v than the average cost from (b). This means that the average cost is ---Select--- v at a production level of 10,000 smartphones. Need Help? Watch It
If you were a taxi driver, the daily revenue and cost are as the following: Revenue: $250 Variable cost (gas, your labor…): $190 Mortgage payment for car: $70 License Fee: $30 For profit maximization, will you operate your taxi business today? What is the minimum daily revenue to keep the operation in the short run? What is the minimum daily revenue to keep the operation in the long run? Please show calculation formula and/or equation.
TC = 217 + 55Q + 4Q2What is the average variable cost when 10 units are produced?Enter as a value.