BUS 207 Study Guide - Quiz Guide: Form 10-Q, Sunk Costs, Marginal Cost
1 Apr 2015
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Apl goes from 4,100/86 to 5,600/16: yes. This plant exhibits increasing returns to scale since increasing both inputs 10 percent increases output 21 percent: a) ac=100/q + 3 2q + 3q2, mc = 3 4q + 9q2, a) acme"s fixed costs are . For the first two days, its sunk costs are (this is the amount that cannot be recovered). After two days, the becomes a sunk cost (sunk costs are ): yes, acme should sublease the railcar. Note that acme"s total loss is if it accepts the farmer"s offer. If it doesn"t, its losses will equal (assuming it returns the railcar by the end of the next business day. ) It is a minimum when dmc/dq = -20 + 6q = 0, or q = 20/6: average variable cost equals. Avc = tvc/q = 50 10q + q2.
