Answered: Explain why understanding the cost…

Business

Economics

Explain why understanding the cost curves and various types of costs is important for businesses making decisions

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section8.4: Costs Of Production: Total, Average, Marginal

Problem 2ST

See similar textbooks

Related questions

Q: To make sensible judgments about economic policy, we must: Select the correct answer below: O demoni...

A: Economic policy refers to policy that addresses that problems of the economy itself.

Q: Compare and contrast the objectives of NEP, NDP and NVP

A: The actions being taken by the government in the economic field and cover the systems for setting ra...

Q: The table summarizes his operations for the past year. Total sales revenue $590,000 Employee wages $...

A: Accounting profit, also referred to as bookkeeping profit or financial profit, is net income earned ...

Q: 1. List 10 new market demand that people need in their lifestyle.

A: We know that Market demand portrays the interest for a given item and who needs to buy it. This is d...

Q: 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not ne...

A: GDP measures the market value of final goods and services produced in the economy within a given per...

Q: What is the total income received by the top quintile of this income distribution?

A: The top quintiles of the income distribution can be calculated by following these steps The first st...

Q: Use the graph input tool to help you answer the following questions. You will not be graded on any c...

A: Here, the given graph provides information about the demand and supply of labor in the fast-food ind...

Q: 5. Interest, inflation, and purchasing power Suppose Ana is an avid reader and buys only comic books...

A: According to fisher’s equation, Real interest rate = nominal interest rate- inflation

Q: Consider a working mother who is guaranteed an income of $18,000 per year from a combination of work...

A: Answer: According to the figure, the x-axis shows that the total hours available is 2500. At 0 hour...

Q: Bruno was given $2000 when he turned 3 years old. His parents invested it at a 2% interest rate comp...

A: Bruno had $2000 in his account and after 13 years the Total value of future would be as follows if ...

Q: The table shows the price and quantity demanded for floor mats. Using the Midpoint Method, what is t...

A: Point Price Quantity B P1=43 Q1=480 C P2=46 Q2=460 Mid point method of price elasticity of ...

Q: The most difficult method of budgeting is... Objective and task Competitive parity Affordable budget...

A: Budgeting refers to the action of an individual when he makes a plan to record the estimate revenue ...

Q: The Levee Spa is a profit-maximing company wanting to hire workers up to the point where the market ...

A: The situation which depicts many sellers selling products that are heterogeneous in nature to consum...

Q: There are four hospitals (consumers in this example) willing to pay the following amounts for a vent...

A: Answer: Surplus: surplus refers to the difference between the cost of producing a good and the maxim...

Q: In 1938, major powers met in Munich to discuss Germany’s demands to annex part of Czechoslovakia. Le...

A: Given information 2 countries Allies and Germany Allies has 2 strategy compromise and fight Germany ...

Q: Suppose that the economy is characterized by the following behavioral equations: C = 180 + 0.7YD /= ...

A: The equilibrium output in the economy is where the aggregate demand equals its aggregate supply. The...

Q: clearly demonstrate how intra and inter temporal choice models can make society incur an opportunity...

A: Managerisl economics characterized as discipline of financial aspects worried about utilization of m...

Q: See the income and benefits information for a wage earner in an antipoverty program with a phased-ou...

A: Answer-

Q: The table shows the price and quantity demanded for coffee mugs. Using the Midpoint Method, what is ...

A: Point Price Quantity D P1=26 Q1=9400 E P2=28 Q2=9200 Price elasticity of demand (Mid point ...

Q: Explain why an increase in the price of an input must typically cause an increase in the long-run to...

A: As we know in long run , firms can increase both factors simultaneously and due to this firm exhibit...

Q: Why the government should not be included in circular flow model and whether you think the governmen...

A: circular flow model Lets understand this concept with an example:- In this circular flow model ther...

Q: Each actor has two possible actions: reduce greenhouse-gas emissions or increase emissions. Each pla...

A: Game theory: - Game theory is the mathematical way of decision-making by different players competing...

Q: 14.6. Let us ignore mixed strategies. Asahi and Kirin are the two largest sellers of beer in Japan. ...

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the qu...

Q: The number of hits per day on the Web site of a tool company is normally distributed with a mean of ...

A: Given in the question Mean= 600 Standard deviation = 120

Q: If you wanted to increase demand for your restaurant but are unable to lower prices or increase adve...

A: Meaning of Demand: The term demand refers to the willingness of an individual to purchase a partic...

Q: Why does local non-satiation of preferences imply that a consumer would always choose a bundle on th...

A: The feature of local non-satiation of consumer preferences states that there is always another bundl...

Q: The following graph shows Raphael's weekly demand for apple pie, represented by the blue line. Point...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: A monopolist produces and sells 400 units at a price of $40 per unit. The monopolist’s marginal cost...

A: Monopolist is a single firm that maximizes profit by producing at MR =MC and charging the maximum pr...

Q: what is the purpose and functions of inside money transfer?

A: In Democratic government system typically, it has been observed that there is both public and privat...

Q: The following table shows the composition of GDP in 2015 for a hypothetical country. Complete the ta...

A: Gross domestic product measures the value of goods and services at current year market prices.

Q: Which of the following describes a defining characteristic of a public good? Select the correct answ...

A: Public good is non excludabe and non rivalry.

Q: in the McCall partial equilibrium model, if unemployed individual can only live for 10 periods. In e...

A: An unemployed individual can only live for 10 periods In each period, she will receive $400 if unem...

Q: Question 19 What was the mito? O A labor tax on indigenous peoples in the Andes O A tax on silver pr...

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: alo

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: New cars to remain scarce well into next year as semiconductor shortage wears on. Explain ...

A: New cars to remain scarce well into next year as the semiconductor shortage wears on. The given situ...

Q: How Satya Nadella manage and run micorsoft?

A: Nadella has worked his way through a variety of roles at Microsoft over the years, some focused on e...

Q: 1. Calculating inflation using a simple price index Consider a fictional price index, the College St...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: three questions that would be helpful! A) With a binding price floor, what will the market price be...

A: The goal of price control is to set a minimum and maximum price for a commodity in order to protect ...

Q: per worker (constant dollars) Productivity using 2010 technology $120,000 90,000 E B 60,000 Producti...

A: Property rights refers to the rights to use, control and gain the benefits from a good or a service....

Q: Which of the following is not a type of corporation? Select one: O a. public O b. benefit

A: All the corporations are explained below:

Q: Compute price index number by simple average of price relatives method using arithmetic mean and geo...

A: The formula used to calculate Price Index is : Price Index = Cost of Market Basket in current yearCo...

Q: a) The table below shows the probability distribution of the discrete random variable X. 2 3 4 6. 7 ...

A: (i) As we know that, the sum of all the probabilities in a probability distribution is always 1 so, ...

Q: The price for some intra-Asia container shipping services, such as the container shipping fee for Ch...

A: The quantity of a commodity demanded is the amount that people opt to purchase at a certain price le...

Q: The following graph shows the labor market for research assistants in the fictional country of Colle...

A: Given; Equilibrium wage= $10 per hour Equilibrium number of research assistants= 200 Levied on em...

Q: 1. What are the strengths and weaknesses of program planning budgeting?

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...

Q: Why socio-economic issues the people’s top concern in an economy are?

A: socio-economic issues The socio-economic issues are the problems the economy is facing. They have ne...

Q: One of the issues that is debated in virtually every election is whether to raise the federal minimu...

A: Given information: Wage rate = $7.25 Tax rate = 10%

Q: Consider the following Cobb-Douglas production function. Q=10 K1/2L1/2 a. Find the first, second, an...

A: The Cobb-Douglas production function shows the technological relationship between the amount of two ...

Q: Explain the determinants of a nation's foreign exchange rate.

A: A nation's foreign exchange rate is between two currencies. Basically, "trade rates are how much one...

Q: The unexpected rise in inflation rate in recent weeks in February 2022 was due to expected increase ...

A: Since you have asked multiple question, we will solve the first question for you. If you want any s...

Question

100%

Explain why understanding the cost curves and various types of costs is important for businesses making decisions.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

in your own personal life, what are some fixed and variable costs you have?
After one month of operation, OU Café determined to shorten its business hours and close on weekends. What costs, fixed or variable, should OU Café have considered when it made the decision? Explain in detail.
Write down the problem the car manufacturer solves to find the levels of 'K' and 'L' that minimize cost. What two equations are used to solve it?
Explain how a company could choose to get bigger, yet lower their average costs?
What is a cost that changes with the change in volume of activity of an organization
After one month of operation, OO Café determined to shorten its business hours and close on weekends. What costs, fixed or variable, should OU Café have considered when it made the decision? Explain in detail.
What are the effects of cost reduction ?
What are different types of costs involved in production of goods and services? Analyze the relationship between cost and productivity in the short run.
Suppose that you want to open a new business or purchase an existing one. Describe that business. What good or service would you provide? Where would you be located? What would be some explicit costs of starting the business? What would be some implicit costs?
What are the fixed and variable cost?
3.1 Every weekend more than 500 different vendors set up at the local farmers' market, selling a variety of items from homemade prepared foods to fresh produce. Yolanda rents a booth each weekend at the farmers' market to sell homemade tamales for $10 a dozen. Yolanda pays each of her four cousins $20 per hour to make the tamales on Friday evenings in the food truck she operates for week- day lunch service. Yolanda sells 60 dozen tamales each weekend at the farmers' market, which takes her cousins four hours to make each Friday. The cost of ingredients for all the tamales totals $240 and the booth at the farmers' market rents for $150 per weekend. a. What market structure does this business most resemble? What characteristics lead you to this conclusion?
The most efficient scale of production is where at which point?