Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you have collected the following data on output an

You have collected the following data on output and total variable costs: ...

70.2K

Verified Solution

Question

Accounting

You have collected the following data on output and total variable costs:

Q

TVC ($)

10

6,780

20

11,840

30

16,260

40

21,120

50

27,500

60

36,480

70

49,140

80

66,560

90

89,820

100

120,000

a. Identify the range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns (decreasing MP).

b. Current fixed costs for the company equal $9,300. Draw two graphs, both with Q on the horizontal axis: one graph shows TVC and TC, and the other shows AVC, ATC, and MC.

c. Suppose that the government imposes a $3,600 property tax hike on all businesses; how will that affect your two graphs; i.e., which cost curves will be affected and how?

d. Suppose instead that the government considers your production process to be polluting, and imposes a $94 tax per unit produced (replacing the property tax in the previous question). How does this tax increase compare to the property tax increase, in terms of the effect on your companys cost curves?

e. Your boss says either of these taxes is going to force us to change our production levels. Given what you know about optimization analysis, how would you respond?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

13. A 15.0 mL NaOH solution is required to neutralize 10.0 mL of 0.100 M H2SO4(aq) solution.         What...

Chemistry
Q

O Arterial pressure when ventricles are relaxed Arterial pressure when all chambers of the heart...

Biology
Q

The network shown in figure is part of a complete circuit A www 192 15...

Physics
Q

Select all CORRECT factors that affect the resistance of a wire Material copper has lower...

Physics
Q

ate the following argument Then tell whether it is a valid or invalid argument by...

Statistics
Q

The sum to be paid to an aggrieved party from the real estate recovery trust...

Algebra
Q

Select the correct choices that complete the sentence below sin A sin B An alternative...

Algebra
Q

On August 1, Alaskan Adventures issues a $160,000, eight-month, 6% note. Interest is payable at...

Accounting
Q

Hello please can you help me to find: Current ratio, Acid test ratio, Account receivable...

Accounting
Q

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days...

Accounting
Q

The Donovan Restaurant Group manufactures the bags of frozen French fries used at its franchised...

Accounting
Q

Discuss the relationship between GAAP and the audit process. Explain the role of auditors in...

Accounting