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expeople1 [14]
4 years ago
5

Isabel runs her​ family's small pineapple processing​ plant, which takes fresh pineapples and cuts them into pineapple​ rings, s

pears, and chunks. The capital stock of the firm consists of three machines of various​ vintages, each of which can process the pineapples into any of the three different forms. All of the machines are in excellent​ condition, and all machines can be running at the same time.
Cost of Processing Maximum Total Capacity
per Pineapple (Pineapples) per Day
Machine 1 $ 0.10 250
Machine 2 0.25 400
Machine 3 0.50 500

(A) Assume that "cost of processing" includes all labor and materials, including the owner's wages. Assume further that Isabel's family signed a long-term contract (20 years) with a service company to keep the machines in good repair for a fixed fee of $1,825 per year, or $5 per day.
1) Derive the firm's marginal cost curve.
2) Derive the firm's total cost curve.
(B) At a price of $0.40, how many pineapples would the company process? What would total revenues, total costs, and total profits be?

Business
1 answer:
Oksana_A [137]4 years ago
3 0

Answer:

Check the explanation

Explanation:

                   Cost of processing/             Max. total capacity

                           pineapple ($)                   (pineapples)/day

Machine 1                    0.1                                      250

Machine 2                   0.25                                   400

Machine 3                   0.50                                   500

The long-term contract to service the machines for  $1,825 per year can be considered to be a fixed cost which is not dependent upon the quantity of output.

Therefore, marginal cost would be the cost of processing and the company would use the machine with least processing cost first till its maximum capacity is reached, followed by the other machines in order of increasing costs.

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3 years ago
The cost per week of running a boarding school is partly constant and partly varies with the number of students in the hostel. i
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Answer:

the cost for the running the boarding school for 600 students is $61000

Explanation:

Let x be the constant  cost  and y be the variable cost . then according to the given condition

total cost=<em><u> x +25y= $3500-------1</u></em>

<u><em>x +50y= $6000----------2</em></u>

Subtracting 1 from 25y= 2500

<u><em>y= 2500/25= $100-----------3</em></u>

<em><u>Putting the value of y from 3 in 1 </u></em>

x+ 25(100)= 3500

x+ 2500= 3500

<u><em>x= 1000$---------4</em></u>

<u><em>Putting the value of y from 3 in 2</em></u>

x+ 50(100)= 6000

x+ 5000=6000

<u><em>x= 1000$----------5</em></u>

<u><em>Putting the values of x and y in 1  for 600 students</em></u>

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4 0
4 years ago
. If Samsung is using experiments as a research method to understand what kinds of mobile phones are more functional as opposed
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The correct answer to the question above is:

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6 0
4 years ago
The Digby Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expec
Igoryamba

Answer:

$4,908,000

Explanation:

The computation of accumulated depreciation expense for this purchase is shown below:-

Depreciation expense = ((Cost of machine - Salvage) ÷ Estimated useful life of machine)

= (($40,900,000 - $4,090,000) ÷ 15) × 2

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6 0
3 years ago
What output quantity will the monopolistically competitive firm produce to maximize profits?
saveliy_v [14]

The output quantity which the monopolistically competitive firm produce to maximize profits is when, "the marginal cost equals the marginal revenue."

In the monopolistically competitive firm, a monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm should produce the extra unit.

The profit-maximizing quantity is the one at which the marginal revenue of the last unit was exactly equal to the marginal cost. Thus, producing any more or less would decrease profits.

Hence, the monopolistically competitive firm produce output quantity when the marginal cost equals the marginal revenue.

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4 0
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