Example Question - marginal cost
Here are examples of questions we've helped users solve.
Calculating Variable Costs, Total Costs, Marginal Costs, and Revenues for a Product
Since the image presents an economics problem, we'll proceed by defining the economic concepts and then calculate each column accordingly. - Variable Cost (\(CV\)) is the cost that varies with the level of output. - Total Cost (\(CT\)) is the sum of Fixed Cost (\(CF\)) and Variable Cost (\(CV\)). - Marginal Cost (\(CM\)) is the change in Total Cost when output is increased by one unit. - Total Revenue (\(RT\)) is the price (\(P\)) multiplied by the quantity (\(Q\)). - Marginal Revenue (\(RM\)) is the change in Total Revenue when one more unit is sold. <p>\begin{align*} \text{Given:} \\ & CF = 10 \text{ (Fixed Cost)} \\ & P = 6 \text{ (Price of each unit)} \\ \end{align*}</p> <p>\begin{align*} \text{For Quantity } (Q) = 0: \\ & CV(0) = Réponse\ 2 = 0 \\ & CT(0) = CF + CV(0) = 10 + 0 = 10 \\ & CM(0) \text{ is not defined as no output is produced.} \\ & RT(0) = P \times Q = 6 \times 0 = 0 \\ & RM(0) \text{ is not defined as no revenue is generated.} \\ \end{align*}</p> <p>\begin{align*} \text{For Quantity } (Q) = 1: \\ & CV(1) = Réponse\ 7 = 6 \\ & CT(1) = CF + CV(1) = 10 + 6 = 16 \\ & CM(1) = CT(1) - CT(0) = 16 - 10 = 6 \\ & RT(1) = P \times Q = 6 \times 1 = 6 \\ & RM(1) = RT(1) - RT(0) = 6 - 0 = 6 \\ \end{align*}</p> <p>(Continue calculating for each subsequent quantity in the same manner.)</p> Note: Due to the unclear resolution and incompleteness of the given table, specific entries cannot be precisely filled in, and some responses are replaced by placeholders (Réponse\ x) which means that the actual numerical values would need to be calculated based on the provided information in the image.
Completing an Economic Table Involving Cost and Revenue
<p>\begin{align*} \text{Quantité (Q)} & \text{Coût fixe (CF)} & \text{Coût variable (CV)} & \text{Coût total (CT)} & \text{Coût marginal (Cm)} & \text{Recette totale (RT)} & \text{Recette marginale (Rm)} \\ 0 & 5 & 0 & 5 + 0 = 5 & - & 0 & - \\ 1 & 5 & 3 & 5 + 3 = 8 & 8 - 5 = 3 & 18 & 18 - 0 = 18 \\ 2 & 5 & 2 \times 3 = 6 & 5 + 6 = 11 & 11 - 8 = 3 & 2 \times 18 = 36 & 36 - 18 = 18 \\ 3 & 5 & 3 \times 3 = 9 & 5 + 9 = 14 & 14 - 11 = 3 & 3 \times 18 = 54 & 54 - 36 = 18 \\ 4 & 5 & 4 \times 3 = 12 & 5 + 12 = 17 & 17 - 14 = 3 & 4 \times 18 = 72 & 72 - 54 = 18 \\ 5 & 5 & 5 \times 3 = 15 & 5 + 15 = 20 & 20 - 17 = 3 & 5 \times 18 = 90 & 90 - 72 = 18 \\ \end{align*}</p>
Profit Maximization Decision Rules Correction
For question 19, regarding profit maximizing decision rules, the statement that is incorrect is: C. MC should always be greater than MR to maximize profit. This statement is incorrect because to maximize profit, a firm should produce up to the point where marginal cost (MC) is equal to marginal revenue (MR), not where MC is greater than MR. Producing where MC is greater than MR would mean the firm is producing too much and would decrease its profitability. The correct profit-maximizing condition is when MC = MR, as stated in option D. Therefore, option C is the incorrect statement.
CamTutor
In regards to math, we are professionals.
Get In Touch
Email: camtutor.ai@gmail.com