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 $3 comma 650 per year, or $10 per day. Derive the firm's total cost curve. 1.) Using the multipoint curved line drawing tool, draw the total cost curve. Properly label your curve.
1 answer:
Answer:
Check the explanation
Explanation:
In the field of economics, to draw a graph that will show a cost curve of any item will involve the costs of production as a function of the overall quantity that was produced. When there’s a free market economy, productively effective and efficient firms optimize their production procedures by reducing their cost consistent with each potential level of production, thereby resulting into a cost curve.
Kindly check the attached images below to see the full explanation and the graphical presentation of the total cost curve.
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Answer:
$206000.
Explanation:
Given: Asset purchase value =
Residual value after five years=
Estimated useful life of asset= five years.
Now, we will calculate depreciation per year using straight line method.
Depreciation=
⇒ Depreciation =
∴ Depreciation expense per year =