A bus is mostly filled with passengers and ready to travel from Los Angeles to S
ID: 1240699 • Letter: A
Question
A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called:
A) variable cost.
B) marginal cost.
C) average total cost.
D) fixed cost.
E) opportunity cost.
60.
Exhibit 11-10 Labor and wage rate data
Labor
Wage
6
$12
7
13
8
14
9
15
10
16
In Exhibit 11-10, the marginal factor cost of the 9th employee is:
A) $13.
B) $135.
C) $21.
D) $15.
E) $23.
62.
Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000. If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?
A) c and d.
B) Extra profit is $45,000.
C) Extra profit is enough to cover half of the fixed cost of your next trip.
D) Extra profit is enough to cover all of the variable costs of your next two trips.
E) Extra profit is zero.
63.
When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
A) price leadership.
B) monopolistic competition.
C) collusion.
D) mutual interdependence.
64.
Exhibit 7-11 Short-run cost curves schedule for pizzeria's hourly production
Total
Product
Total
Variable Cost
Total
Cost
0 pizzas
$ 0
$ 20
10
50
70
20
80
100
30
130
150
40
230
250
In Exhibit 7-11, the average total cost or producing 40 pizzas per hour is equal to:
A) $10 per pizza.
B) $6.25 per
Labor
Wage
6
$12
7
13
8
14
9
15
10
16
Explanation / Answer
Marginal factor cost is the extra cost incurred when a firmbuys one more unit of an input. It can be figured out by Change intotal factor cost/change in factor quantity. The change in totalfactor cost can be figured out by multiplying amount of workers bythe wage. (9*15 - 8*14) = (23). The change in factor quantity is 1so 23/1 is $23 which is E
If prices increases to 3.50 from 3.00 the extra profitis .50. We multiply .50 * 20000 to get 10000 which is the extraprofit. Let us first determine whether or not the answers given arecorrect. B is incorrect as extra profit is 10,000 not 45,000. C isindeterminable as Average Fixed Cost relies on the quantity of fishfished. D is correct as the the price of variable cost is 5000. Twotimes that is 10000. E is incorrect as extra profit is not zero. Dis your answer
Mutual interdependence means that firms realize theeffects of their actions on rivals and the reactions such actionsare likely to elicit. That is the situation between pepsi and coke.So the answer is D
Average Total Cost is Total Cost/Quantity. So 230/40 =5.75 so C is your answer
Revenue at the fifth worker and fourth worker is outputtimes fixed price. So (110*8 - 100*8) = 80 so the answer isB
I have to get food so i will explain the rest of thequestions in a bit sorry but i dont know how to save replies
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