4.A 5. Competition Simone's lawn-mowing service is a profit-maximizing, competitive firm. Simone nows lawns for $27 each. Her total cost each day is $280, of which $30 is a fixed cost. She mows 10 lawns a day. In the short run, Simone should . In the long run, Simone should the industry. "t Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs: Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars) 15 35 60 90 135 240 . 1. 1. 480 The efficient scale is houses.4.B Firm's Costs 2 Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost Dozens of pizzas) ( Dollars) ( Dollars) 0 280 320 40 N 350 70 380 100 4 420 140 70 190 530 250 The pizzeria's fixed cost is $ Complete the third column of the following table by calculating the marginal cost per dozen pizzas using the information o the final column by calculating the marginal cost per dozen pizzas using the information on variable cost. Quantity Total Cost Marginal Cost Variable Cost Marginal Cost Using Total Cost Using Variable Cost Dozens of pizzas) (Dollars) (Dollars) (Dollars) (Dollars) 0 280 320 40 350 70 380 100 un B W N 420 140 470 190 530 250 True or False: It doesn't matter whether you compute marginal cost using total cost or variable cost. O True O False4.C ". Lump-Sum Tax The city government is considering two tax proposals: . A lump-sum tax of $300 on each producer of hamburgers. . A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. O Marginal cost will increase. O Average total cost will increase. O Average fixed cost will increase. Average variable cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. O Average variable cost will increase. Average total cost will increase. O Average fixed cost will increase. O Marginal cost will remain unchanged