I own two [fixed] plants and can within limits increase [decrease] a plant’s output by using...
I own two [fixed] plants and can within limits increase [decrease] a plant’s output by using more of a variable input. To minimize my total costs of a given output I should allocate the input between plants so that both are operating at the same marginal cost. Yes or no?Explain
Homework Answers
Yes
The marginal cost should be same in both the plants in order to minimise the cost of production. suppose that marginal cost in one plant is greater relative to the marginal cost in another plant. Then it would be better to produce in the second plant where the marginal cost is relatively lower. As production is increased, we know that marginal cost will go up in the second plant. Also production is decrease in first plant so that marginal cost will decline. Eventually declining marginal cost in first plant and rising marginal cost in the second plant will result in equalization of the marginal cost in the two plants. Therefore cost minimising allocation of inputs will result in same marginal cost in both plants.
Add Answer to:
I own two [fixed] plants and can within limits increase
[decrease] a plant’s output by using...
29) As output increases, average fixed costs A) decrease. B) increase. C) remain constant. D) initially...
29) As output increases, average fixed costs A) decrease. B) increase. C) remain constant. D) initially decrease and then increase. Output (pizzas per hour) Total cost (dollars) WN- 30) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to A) $35. B) $20. C) $79. D) $85. 31) If 9 workers can produce 1,550 units of output and 10 workers can produce 1.700 units of output, then the marginal...
tcon Heview i ne Nature ana runcuion of Product Markets Unit 4: Behind the Supply Curve:...
tcon Heview i ne Nature ana runcuion of Product Markets Unit 4: Behind the Supply Curve: Profit, Production, and Costs Chapters: 21 & 22 5.) Bernie's ice-making company produces ice cubes using a 10-ton machine and electricity (along with water, which we will ignore as an input for simplicity). The quantity of output, measured in pounds of ice, is given in the accompanying table. Quantity of electricity (kilowatts) 1 Quantity of ice (pounds) 0 1 ,000 1.800 2 ,400 2.800...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
Problem Two - Using the information in data set one, which I have included in the...
Problem Two - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the variable input (which is labor in this example) is not $50 but $55. I have created Table 2 for you to put your answers in. Assume that fixed costs remain at $230. When the price of a variable...
I have some question about PID applied Cruise Control within Simulink. First of all, am a...
I have some question about PID applied Cruise Control within
Simulink.
First of all, am a bit confused about the the property of PID
applied feedback system. According to the following figure, the use
of a PID controller is to minimize or eliminate the difference
between SP and PV. However, since a transfer function has been
applied to the loop which is the process block in the following
diagram then how the difference could be possibly
erased?
For example,...
Please help! And please explain how to get answers so I can learn how to do...
Please help! And please explain how to get answers so I can
learn how to do it on future problems. Thanks in advance! I'll be
sure to give a thumbs up.
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 105 Selling price Variable expenses 100% 63 60% $ 42 Contribution margin 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per...
Question 4 Glee Cupcakes in Chelsea, Michigan bakes delicious gourmet cupcakes that are sold throughout southeast...
Question 4 Glee Cupcakes in Chelsea, Michigan bakes delicious gourmet cupcakes that are sold throughout southeast lower Michigan. Suppose that the gourmet cupcake market is a (perfectly) competitive business in this area, and so the owner of the bakery knows that it is important to keep costs under control. At its current production level, Glee Cupcakes has given an MBA marketing team the following data estimates: Cupcake price: $4 Quantity sold per week: 150 Current marginal cost: $4 Total variable...
Hello! Can someone please explain how to solve this to me? I am stuck and I can't find this problem in my textbook, than...
Hello!
Can someone please explain how to solve this to me? I am stuck
and I can't find this problem in my textbook,
thanks!
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.02 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $835,434 per year. Administrative cost (all fixed) totals...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,280,000 $840,000 (168,000) Cost of goods sold: Cost of goods manufactured Ending inventory Total cost of goods sold Gross profit Selling and administrative expenses Operating income (672,000) $608,000 (305,000) $303,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable...
Discussion questions 1,2,4,6,7,14,17 only 1. a: SISO - S100550 2. e: (5150 - $100/S150 = 1...
Discussion questions 1,2,4,6,7,14,17 only
1. a: SISO - S100550 2. e: (5150 - $100/S150 = 1 3. : 575.000/S50 CM per unit 4. 5. : $300,000 - 5 Contribution margin ratio (5400 - $260)/540002 Targeted sales (68.10,000+ $70,0001/0.35 = 52.600 1.500 units Superscript letter AB, or donates assignments based on Appendix 21A, 218 or 27 con denotes assignments that involve decision making The U Discussion Questions 1. What is a variable cost? Identify two variable costs. 2. T When output...
29) As output increases, average fixed costs A) decrease. B) increase. C) remain constant. D) initially decrease and then increase. Output (pizzas per hour) Total cost (dollars) WN- 30) Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total fixed cost is equal to A) $35. B) $20. C) $79. D) $85. 31) If 9 workers can produce 1,550 units of output and 10 workers can produce 1.700 units of output, then the marginal...
tcon Heview i ne Nature ana runcuion of Product Markets Unit 4: Behind the Supply Curve: Profit, Production, and Costs Chapters: 21 & 22 5.) Bernie's ice-making company produces ice cubes using a 10-ton machine and electricity (along with water, which we will ignore as an input for simplicity). The quantity of output, measured in pounds of ice, is given in the accompanying table. Quantity of electricity (kilowatts) 1 Quantity of ice (pounds) 0 1 ,000 1.800 2 ,400 2.800...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
I have some question about PID applied Cruise Control within
Simulink.
First of all, am a bit confused about the the property of PID
applied feedback system. According to the following figure, the use
of a PID controller is to minimize or eliminate the difference
between SP and PV. However, since a transfer function has been
applied to the loop which is the process block in the following
diagram then how the difference could be possibly
erased?
For example,...
Please help! And please explain how to get answers so I can
learn how to do it on future problems. Thanks in advance! I'll be
sure to give a thumbs up.
[The following information applies to the questions displayed below.] Data for Hermann Corporation are shown below: Percent Per Unit of Sales $ 105 Selling price Variable expenses 100% 63 60% $ 42 Contribution margin 40% Fixed expenses are $81,000 per month and the company is selling 3,800 units per...
Hello!
Can someone please explain how to solve this to me? I am stuck
and I can't find this problem in my textbook,
thanks!
Margin of Safety Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.02 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $835,434 per year. Administrative cost (all fixed) totals...
Calculator Absorption Statement Absorption costing does not distinguish between variable and fixed costs. All manufacturing costs are included in the cost of goods sold. Saxon, Inc. Absorption Costing Income Statement For the Year Ended December 31 Sales $1,280,000 $840,000 (168,000) Cost of goods sold: Cost of goods manufactured Ending inventory Total cost of goods sold Gross profit Selling and administrative expenses Operating income (672,000) $608,000 (305,000) $303,000 Variable Statement Under variable costing, the cost of goods manufactured includes only variable...
Discussion questions 1,2,4,6,7,14,17 only
1. a: SISO - S100550 2. e: (5150 - $100/S150 = 1 3. : 575.000/S50 CM per unit 4. 5. : $300,000 - 5 Contribution margin ratio (5400 - $260)/540002 Targeted sales (68.10,000+ $70,0001/0.35 = 52.600 1.500 units Superscript letter AB, or donates assignments based on Appendix 21A, 218 or 27 con denotes assignments that involve decision making The U Discussion Questions 1. What is a variable cost? Identify two variable costs. 2. T When output...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago