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Chapter 22: Q. b- For Critical Thinking (page 492)

Are the annual expenses that a shipper must incur to maintain its iBubble Wrap air pumps part of its fixed costs or of its variable costs?

Short Answer

Expert verified

Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. Examples of fixed costs are rent and lease costs, salaries, utility bills and loan repayments.

Step by step solution

01

Introduction.

To find that the shipper must incur to maintain its iBubble Wrap air pumps part of its fixed costs or of its variable costs.

02

Reason for the shipper must incur to maintain its iBubble Wrap air pumps.

Shipper must incur to maintain its iBubble Wrap air pumps part of its fixed costs and therefore, Fixed costs will be costs that don't change when deals or creation volumes increment or diminishing. This is on the grounds that they are not straightforwardly connected with assembling an item or conveying a help. Subsequently, fixed costs are viewed as roundabout expenses.

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Most popular questions from this chapter

If short-run average variable costs and marginal costs decline at every feasible quantity of output, what (if anything) happens to the positions of the AVC, AFC, ATC, and MC curves? Explain.

In an effort to reduce their total costs, many companies are now replacing paychecks with payroll cards, which are stored-value cards onto which the companies can download employees' wages and salaries electronically. If the only factor of production that a company varies in the short run is the number of hours worked by people already on its payroll, would shifting from paychecks to payroll cards reduce the firm's total fixed costs or its total variable costs? Explain your answer.

As ports have produced higher quantities of loading and unloading services, have there been upward movements along their AVC and MC curves or upward shifts in those curves? Explain.

The diagram below displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell phones:

a What are the daily total fixed costs of producing LCD screens?

b. What are the total variable costs of producing 100LCD screens per day?

cWhat are the total costs of producing 100LCD screens per day?

d What is the marginal cost of producing100LCD screens instead of 99? (Hint: To answer this question, you must first determine the total costs-or, alternatively, the total variable costsof producing 99LCD screens.)

Describe the long-run cost curves a typical firm faces and define a firm's minimum efficient scale
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