SOLUTION: ECON 101 Saudi Electronic University Total Cost of Bicycles Discussion

Hey, please go through the following answer document to see if it meets all the criteria. All answers with explanations are included in the document. Answers have been checked for plagiarism, format and grammar. If in case you need any revisions, please let me know :)Question 1.Solution :The total cost of bicycles produced in a day is the sum of the fixed cost and the variablecost.Given that the fixed cost for producing bicycles = $6000 per dayGiven that the variable cost for producing bicycles = $80 per bicycle per daya) Since Average cost (AC) = (Total cost) / (Number of units of good produced),For 30 bicycles,Total cost (TC) = $ (6000 + 30*80) ( Fixed Cost + Total Variable Cost )TC = $ 8400∴ Average cost (30 bicycles) = 8400/30 = $280For 60 bicycles,TC = $ (6000 + 60*80) ( Fixed Cost + Total Variable Cost )TC = $ 10800∴ Average cost (60 bicycles) = 10800/60 = $180For 100 bicycles,TC = $ (6000 + 100*80) ( Fixed Cost + Total Variable Cost )TC = $ 14000∴ Average cost (100 bicycles) = 14000/100 = $140For 300 bicycles,TC = $ (6000 + 300*80) ( Fixed Cost + Total Variable Cost )TC = $ 30000∴ Average cost (300 bicycles) = 30000/300 = $100b)The LRAC (Long Run Average Cost) Curve decreases initially but starts to become flatas the quantity produced increases. Hence, the average costs decrease initially but stabilise as thequantities produced increase.Question 2)Solution :In a market with perfect competition, the price of the commodity is equal to its marginalrevenue (MR). The equilibrium quantity in this market is the quantity at which the marginalrevenue (MR), which is also the price (P), is equal to the marginal cost of production (MC) ofthat commodity.a)Consider the case as drawn in the graph. The equilibrium price P is charged by the firm, which isdecided by the competitive market. This price is also equal to the marginal revenue(MR). Theproduction cost C per unit is decided by the point where the …

15 Million Students Helped!

Sign up to view the full answer

Order a unique copy of this paper
(550 words)

Approximate price: $22

Our Basic features
  • Free title page and bibliography
  • Plagiarism-free guarantee
  • Unlimited revisions
  • Money-back guarantee
  • 24/7 support
Our Options
  • Writer’s samples
  • Expert Proofreading
  • Overnight delivery
  • Part-by-part delivery
  • Copies of used sources
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

AcademicWritingCompany guarantees

Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.

Money-back guarantee always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, always

Read more

Zero-plagiarism tolerance guarantee

The paper that you order at is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.

Read more

Free-revision guarantee

The thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.

Read more

Privacy and Security policy

With, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.

Read more

Adherence to requirements guarantee

The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2020 at 10:52 AM
Total price:
The price is based on these factors:
Customer Academic level
Number of pages required
Urgency of paper