Question: QUESTION 11 In your answer from Question 10 above, what you have actually solved for is total variable costs, because the fixed component of costs

independent of the firm's profit maximization decision. Suppose that there were an

additional fixed cost of 100 11 What would be the total cost

QUESTION 11 In your answer from Question 10 above, what you have actually solved for is total variable costs, because the fixed component of costs (rent, for example) are fixed and given, and hence are independent of the firm's profit maximization decision. Suppose that there were an additional fixed cost of 100 11 What would be the total cost function from Question 10 after taking into account these fixed costs? O TQ(q) = 18.69 O TC(q) = 100 25 2 11 179 O TC(q) = 100q 25 2 11 719 O TC(g) = - 100 + 25 11 719QUESTION 12 Given your answer from Question 12 above, what would be the firm's average total costs? O ATQ(q) = 18.69 q O ATC(g) = 125 11 9 O ATC(q) = 100 25 + 11 179 O ATC(q) = 100 25 + 11qQUESTION 13 Suppose that the firm's marginal costs were given by MC = - 50 19. Then, given your answers to Questions 11 and 12 above, at what quantity q does the firm achieve maximum cost efficiency? (That is, at what point does it go from increasing to decreasing returns to scale?) O q=2 O q = 16 O q =4 O Roughly q = 350

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

12 For May, Mariana company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget. The company applies overhead with a...

Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.40 per hour. During October, the company actually uses 20,500 hours of direct labor at a $340,300 total cost to...

Question 1 (0.3125 points) In which of the following market structures is the barrier to entry the strongest? perfect competition monopoly O oligopoly monopolistic competition Question 2 (0.3125...

16 0.94 points eBook Print References Check my wo For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead...

Flexible Budgets Assignment i 3 12 points eBook Print References For May, Mariana company planned production of 15,200 units (80% of its production capacity of 19,000 units) and prepared the...

Please provide solution ASAP For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget. The company...

For May, Mariana company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget. The company applies overhead with a standard...

For May, Mariana company planned production of 17,600 units (80% of its production capacity of 22,000 units) and prepared the following overhead budget. The company applies overhead with a standard...

Which costs will change with a decrease in activity within the relevant range. Total fixed costs and total variable costs Unit fixed costs and total variable cost Unit variable cost and unit fixed...

For May, Mariana company planned production of 15,200 units (80% of its production capacity of 19,000 units) and prepared the following overhead budget. The company applies overhead with a standard...

The general equation for a parabola is y = ax2 + bx + c, where a, b, and c are constants. What are the units of each constant if y and x are in meters?

A rotation of the axes in the x-y plane through an angle ? transforms the coordinates according to Use this to show that if a pancake object in the x-y plane has a symmetry under a rotation through ?...

Evaluate the indefinite integral. d x x 2 x 2 + 2 5 2 = + C .

Suppose Sam runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Sam's total...

Write a new function called MyVectorInfo() that takes as input a vector and returns the key characteristics of vector, such as the min, the max, and the mean of the vector. Make sure to give careful...

A researcher has data on the average annual rate of growth of employment , e, and the average annual rate of growth of GDP, x, both measured as percentages, for a sample of 27 developing countries...

The account receivables balance for the year ended 31st March 20XX was $ 24,800. Bad debts of $2,800 were written off on this date and an amount of $3,000 in respect of bad debts written of in the...

You are the assistant manager at Bounce Fitness Sydney City. You manage five fitness instructors and a receptionist. You report to the Center Manager, Jacinta Scotts. Using the Professional...

Identifying How Machine Learning Can Solve Problems What problem would you like your machine learning model to solve? What output would you like your machine learning model to produce? How will you...

Self-confidence

The number of people commenting on the statement

3. Choose a social incident in your local area. (a) List three points that you believe are the cause of the social incident and develop a model that shows a linear relationship. (b) What is the...