QuickHelper

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About QuickHelper

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Elementary,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
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Teaching Since: May 2017
Last Sign in: 356 Weeks Ago, 1 Day Ago
Questions Answered: 20103
Tutorials Posted: 20155

Education

  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

Experience

  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 14.00

Short-Run Costs of A Production

I have two questions about Short-Run Costs of A Production:

A.Short-Run Costs of A Production Schedule.

Calculate Table

OUTPUT

TFC

TVC

TC

MC

AFC

AVC

ATC

0

200

0

          

1

200

175

          

2

200

300

          

3

200

500

          

4

200

800

          

5

200

1,200

          

6

200

1,700

          

7

200

2,300

          

Determine the following:

1. What is the behavior of the TC as Output increases? Answer the same

question in regard to the TFC. Why the difference?

  1. What do the AFC, AVC and ATC curves do as regards increases in output? Is
  2. What does the MC curve do with regard to Output? Why? What is the

there a difference in the AFC? Why?

relationship between the MC curve and ATC, AVC curves? Would this

be important information for the Producer?

B.Short-Run Cost of Production Schedule – Product X

(Perfect Competition)

 

 

OUTPUT

TFC

TVC

TC

MC

AVC

ATC

0

200

0

        

1

200

175

        

2

200

300

        

3

200

500

        

4

200

800

        

5

200

1,200

        

6

200

1,700

        

7

200

2,300

        

 

 

  • (A)Assume price = $250; calculate total profit/loss using TR – TC method.
  • (B)Calculate Output using the formula: Profit = (Price – ATC) x Q
  • (C)Calculate Output using the formula: Profit = (Price – ATC) x Q
  • (D)Calculate Output using the formula: Profit = (Price – ATC) x Q
  • (E)Use price schedule to determine Q‘s. (Repeat the process for prices $350, $450,, $550, and $650 before presenting all the output computed at different price levels in the table below.
  • (F)What does short-run cost model tell you about the behavior of the firm in regard

OUTPUT

TR

TC

PROFIT/LOSS

0

      

1

      

2

      

3

      

4

      

5

      

6

      

7

      

Hint: construct a new table to find new output at the different levels of ATC values (in first table) and profit in table 2 when price is $250.

Hint: construct a new table to find new output at the different levels of ATC values (in first table) when price is $180. Also find new profit/loss values first.

Hint: construct a new table to find new output at the different levels of ATC values (in first table) when price is $140. Also find new profit/loss values first.

to MC and Price?

Answers

QuickHelper
(10)
Status NEW Posted 11 Aug 2017 03:08 PM My Price 14.00

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