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In the short run the Sure-Screen T-Shirt Company is producing 500 units of output Its average variable costs are 2.00 and its average fixed costs are 50 The firm's total costs?
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∙ 10y ago
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∙ 10y ago
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A company is producing 500 units of output Its average variable costs are 2.00 and its average fixed costs are 50 What is the total cost?
Total cost = variable cost + fixed cost fixed cost = 50 fixed cost per unit = 50 / 500 = .1 total cost = 2 + .1 = 2.1 per unit
When price exceeds average variable cost but not average total cost the firm should in the short run?
Minimize total losses by producing at the rate of output where ATC is minimized.
The long run average total cost curve?
The long run average total cost curve is the lowest average total cost for producing each level of output. It depicts the per unit cost of producing a good or service in the long run when all inputs are variable.
When should a company shut down in short run?
when price is less then average variable costs !
Why does the average variable cost curve initially slope downward?
The average variable cost curve compares the company's maximum performance to its present state. For example if the minimum profits are to the left of the AC it means the company will decrease profits by increasing their production. Therefore creating a curve.
A company is producing 500 units of output Its average variable costs are 2.00 and its average fixed costs are 50 What is the total cost?
Total cost = variable cost + fixed cost fixed cost = 50 fixed cost per unit = 50 / 500 = .1 total cost = 2 + .1 = 2.1 per unit
When price exceeds average variable cost but not average total cost the firm should in the short run?
Minimize total losses by producing at the rate of output where ATC is minimized.
The long run average total cost curve?
The long run average total cost curve is the lowest average total cost for producing each level of output. It depicts the per unit cost of producing a good or service in the long run when all inputs are variable.
When should a company shut down in short run?
when price is less then average variable costs !
Why does the average variable cost curve initially slope downward?
The average variable cost curve compares the company's maximum performance to its present state. For example if the minimum profits are to the left of the AC it means the company will decrease profits by increasing their production. Therefore creating a curve.
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Why is average cost and average variable cost are both you shaped?
the average variable cost curve and average cost curve are u- shaped because of the law of variable proportions.
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
What is happening to average variable costs when they equal marginal costs?
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
Can you explain the shut down rule in perfect competition?
Shut-down point is when Price equals Minimum Average Variable Cost. At this point the firm is indifferent between producing or shutting down. This is because at the point Total Revenue is equal to Total Variable Cost, so by producing or shutting down, the firm is making a Loss equal to Total Fixed Costs no matter what it chooses to do
Can you explain the shut-down rule in perfect competition?
Shut-down point is when Price equals Minimum Average Variable Cost. At this point the firm is indifferent between producing or shutting down. This is because at the point Total Revenue is equal to Total Variable Cost, so by producing or shutting down, the firm is making a Loss equal to Total Fixed Costs no matter what it chooses to do
What is the average cost per acquisition for email lists?
The cost average is $7.00 per sales order. This is actual buying customers. If you are talking about an email list then the average CPM on that is variable depending on the company itself.
