Author Question: A bakery that produces 100 loaves of bread has a variable cost of 50 and a fixed cost of 200. ... (Read 174 times)

misspop

  • Hero Member
  • *****
  • Posts: 540
A bakery that produces 100 loaves of bread has a variable cost of 50 and a fixed cost of 200. Calculate the total cost, average total cost, average variable cost, and average fixed cost of the bakery.
 
  What will be an ideal response?

Question 2

Is it possible for an input to have a negative marginal product?
 
  What will be an ideal response?



jrpg123456

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

The total cost that the bakery incurs = 50 + 200 = 250.
The average total cost of the bakery = 250/100 = 2.50.
The average variable cost of the bakery = 50/100 = 0.50.
The average fixed cost of the bakery = 200/100 = 2.

Answer to Question 2

Yes, sometimes if a variable input is continued to be acquired even after the stage of diminishing returns, it can actually lead to a fall in total output. Hence, it is possible for an input to have a negative marginal product.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

For a complete list of videos, visit our video library