Answer 100 points worth of questions. 1. (20 pts.) The total cost function at the Tate company is TC = 200 + 3Q + .5Q2, where TC is total cost, and Q is output. a. What is marginal cost (the derivative of TC with respect to Q) when Q = 1? b. What is marginal cost when Q = 5? c. What is marginal cost when Q = 10? d. Graph the TC function in Excel for values of Q ranging from 0 to 20 in increments of one. 2. (20 pts.) Find the partial derivative of Y with respect
Words: 437 - Pages: 2
produce 6,000 units of output per month with variable costs of $2,000 per day. The fixed costs are not disclosed and we are told they are "high enough" so the total costs exceed the firms total revenue. The price of the firm's output is $32 and the marginal cost of the last unit is $30. 2. Access the current environmental scan factors. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations. Given the information
Words: 1886 - Pages: 8
Principles of Microeconomics Questions NP #4 Chapter 7 Li, a very careful maximizer of utility, consumes two services, going to the movies and bowling. She has arranged her consumption of the two activities so that the marginal utility of going to a movie is 20 and the marginal utility of going bowling is 10. The price of going to a movie is $10, and the price of going bowling is $5. Show that she is satisfying the requirement for utility maximization. Now show what happens when the price of going
Words: 490 - Pages: 2
For Case 3-1: answer questions 1 - 5. 1. Breakeven Volume Analysis Varible costs Medical Supplies: $493,806 Purchased Laboratory Services: $24,476 Water Usage: $20,896 Total Variable Costs: $539,178 Number of treatments: 5,736 Total Variable Cost / Number of treatments $539,178 / 5,736 = 94 Px = a + bx $250x = $510,870 + 94x $156x = $510,870 ($156x = $510,870)/$156 = 3274.81 3274.81 treatments per year 7 nurses -1 $35,000/7 = $5,000 bi-monthly / 2 = $2,500 monthly ($2,500
Words: 288 - Pages: 2
responsibility centres (revenue, expense (ECC, DCC), profit (GMC, IPC, BPC, CPC, Investment centre) and the organization of these centres Ratios or specific elements used for measure Transfer pricing (market-based (ideal method), marginal cost (rare and not extremely useful), marginal cost and lump-sum fee,full-cost / full-cost and mark-up (most widely used), negotiated (can lead to power struggles), dual-rate OVERVIEW OF THE CASE As of 2003, Kranworth designed and manufactured a large
Words: 1459 - Pages: 6
for the risk they assume when making their investments. a. | true | b. | false | Chapter 2 1. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____. a. | marginal returns | b. | total costs | c. | marginal costs | d. | average costs | e. | average benefits | 5. The standard deviation is appropriate to compare the risk between two investments only if a. | the expected returns from the investments
Words: 304 - Pages: 2
Review Questions: Chapter 4 - Job Costing True/False 1. The computation of the budgeted indirect manufacturing cost rate is identical to the budgeted indirect cost rate for service organizations. 2. Similar jobs can be recorded on the same job cost record in the job costing system. 3. The consumption of direct materials, direct manufacturing labor, and allocated manufacturing overhead are credited against work-in -process for the applicable period. 4. Indirect materials, indirect manufacturing labor
Words: 10332 - Pages: 42
Variable costs include direct materials and direct labor, costs of goods sold, and sales commission. A variable cost may also be defined as a cost that remains the same per unit at every level of activity (Kimmel, Weygandt, & Kieso, 2009). Variable costs for Snap Fitness can membership sales. Active memberships are important in determining how much revenue the fitness center can bring in monthly. Snap Fitness does not have an enrollment fee or contract, their standard membership fee of $26.00
Words: 264 - Pages: 2
following formulas can be used to calculate the necessary values for the chart. • • • • • • • MPL (Marginal Product of Labor) = (change in Q)/(change in L) In this case, labor is the only input that varies and we assume a constant wage. VC (Variable Cost) = L*wage FC (Fixed Cost) = TC – VC AVC (Average Variable Cost) = VC/Q AFC (Average Fixed Cost) = FC/Q ATC (Average Total Cost) = TC/Q or AFC + AVC MC (Marginal Cost) = (change in TC)/(change in Q) b) What is the relationship between ATC and MC, if ATC
Words: 2614 - Pages: 11
This is because for a particular Output, Marginal Cost is defined as the change in Total Costs / An increase in 1 unit of output. Any change in Total costs is dependent only on the variable costs of the two firms. As the question does not state the Variable costs of either of the firms, it is uncertain that MC of Firm A > MC of Firm B with only information of Fixed Costs provided. 3. Uncertain. This is because there can be a scenario in which marginal product is falling while the average product
Words: 359 - Pages: 2
