1. What are total costs?
2. What is the difference between fixed costs and variable costs?
3. What is the equation for Total Revenue?
4. What is a production function?
5. How do you calculate marginal costs?
6. How do you calculate Average Total Costs?
7. What is the difference between explicit costs and implicit costs?
8. Do accountants typically consider implicit costs?
9. What is economies of scale?
10. What is breakeven analysis?
11. Assume the following:
Fixed Costs = 5,000
Variable costs = 10
Price = 30
What is the breakeven quantity?
What would the profit or loss be if I sold 500 units?
1. What are total costs?
ReplyDeletethe market value of the inputs a firm uses in production
2. What is the difference between fixed costs and variable costs?
fixed costs: costs that do not vary with the quantity of output produced
variable costs: costs that vary with the quantity of output produced
3. What is the equation for Total Revenue?
TR=QxP
4. What is a production function?
the relationship between quantity of inputs used to make a good and the quantity of output of that good
5. How do you calculate marginal costs?
Marginal cost = Change in total cost/ Change in quantity
6. How do you calculate Average Total Costs?
Average total cost = Total cost/ Quantity
7. What is the difference between explicit costs and implicit costs?
explicit costs: input costs that require an outlay of money by the firm
implicit costs: input costs that do not require an outlay of money by the firm
8. Do accountants typically consider implicit costs?
no just explicit cost
9. What is economies of scale?
the property whereby longrun average total cost falls as the quantity of output increases
10. What is breakeven analysis?
its analysis that determine whither your business will be able to cover all its expenses and begin to make a profit or no.
11. Assume the following:
Fixed Costs = 5,000
Variable costs = 10
Price = 30
What is the breakeven quantity?
total cost= 5000+10Q
TR=30Q
Breakeven quantity: (5000+10Q=30Q)
(5000=30Q-10Q)
(5000=20Q)
(Q=250)
What would the profit or loss be if I sold 500 units?
=500x30
= 15,000
15,000-(5000+10(500)
=15,000-10,000
=5,000
So By selling 500 unit the company will get profit = 5,000$
Noura Binkhathlan
1. The market value of all of the inputs a firm uses in production.
ReplyDelete2. Fixed cost = cost that need to be paid monthly regardless whether the business is doing well or not such as shop rental, labour costs.
Variable costs = cost that in accordance with pace of business like if your have higher sales will relate to higher purchasing of materials or lower sales means you don't have to pay much taxes
3. fixed costs plus variable costs, TC=FC+VC
4. Relationship between inputs and outputs
5. The increase in total cost for the next unit, MC=(delta)TC/(delta)Q
6. Total costs divided by quantity of outputs, ATC=TC/Q
7. Implicit costs: Are costs that do not require money
Explicit costs: Are costs that require money
8. Yes
9. Long-run average costs fall as quantity output increases
10. An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue, Break-even point = fixed cost/contribution per unit
11. Break-even = 5000 / (30-10) = 5000 / 10 = 500
The net profit will be $0
1. the market value of the inputs a firm uses in production.
ReplyDelete2. fixed costs: costs that do not vary with the output produced
variable costs: costs that vary with the output produced.
3. TR= Px Q
4. the relationship between inputs and output.
5. Marginal cost = Change in total cost/ Change in quantity
6. Average total cost = Total cost/ Quantity
7. Implicit costs: Are costs that do not require money
Explicit costs: Are costs that require money.
8. not just explicit cost but implicit also.
9. the property whereby longrun average total cost falls as the quantity of output increases.
10. An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.
11. total cost= 5000+10Q
TR=30Q
Breakeven quantity: 5000+10Q=30Q
5000=30Q-10Q
5000=20Q
Q=250