Consider the figure to the right. Suppose that the current scale of output for a typical firm facing this LAC curve, which applies to all firms in this industry, is between points A and B, at about 400 units per period. If a new firm entering the industry desires to produce at the minimum efficient scale, would it wish to produce 60 units per period, 400 units per period, or 700 units per period? Explain. By definition, minimum efficient scale is the rate of output per period that minimizes long-run average cost. However, of the three output rates is consistent with minimized long-run average cost. Hence, a new firm entering the industry will wish to produce at any rate LAC Long-Run Average Cost ($ per unit of output) exceeding | and less than units of output per period. (Enter your responses as whole numbers.) B :60 $400 :700 Output (units per time period)Refer to the table and assume that each year this consumer buys only annual subscriptions to economics statistics apps and subscriptions to office productivity apps. The price of a subscription to each type of economics statistics app is $3 per year, and the subscription to each office productivity app is $60 per year. If the consumer's available income is $255 per year, what quantity of each item will the individual purchase each year at a consumer optimum? Quantity of Quantity of Subscriptions to Subscriptions to Economics Statistics Total Utility Office Productivity Apps per Year (utils) Apps per Year Total Utility (utils) 40 400 60 700 WN 76 AWN 850 86 950 DUI AC 91 1,000 93 1,025 The individual will purchase a quantity of economics statistics apps and office productivity apps each year at a consumer optimum.Given the following: Income = $27, Price of a Pizza = $5, Price of a Video = $4, fill in the blanks in the table below (Note: MU/S = the Marginal Utility per dollar spent). Units Total Utility Pizzas MU/$ Pizzas Units Total Utility Videos MU/$ Videos 50 10 30 7.5 N N 90 58 3 120 6 82 6 140 4 4 102 150 118 4 155 YOU O - N 130 NO 155 138 If your income is $27 a month, the price of pizza is $5 and the price of a video is $4, how many pizzas will you buy and how many videos will you rent each month? O A. 4 of each. O B. 3 pizzas and 3 videos. O C. 6 pizzas and 2.5 videos. O D. 5 pizzas and 4 videos.Roy has a weekly budget of $17, to spend on hamburgers and fries. The price of hamburgers is $2, and the price of fries is $3. Calculate marginal utility per dollar for each good, and use it to complete the table below. Hamburgers Marginal Utility MU/$, Fries Marginal Utility MU/$, per period hamburgers hamburger per period fries fries 18 15 14 N 12 N 3 10 3 9 4 6 4 6 5 2 5 If Roy is maximizing utility, he will consume hamburgers and fries.Profits can be regarded as total revenues minus total costs. For an accountant, total costs are all explicit costs. For an economist, total costs are accounting costs plus all implicit costs including a normal rate of return on investment. If the normal rate of return on investment and all other implicit costs were to remain unchanged while accounting profit increased, explain why economic profit would also increase Accounting profit equals minus all Economic profit equals minus all Thus, if accounting profit increased while all implicit costs remained unchanged, economic profit would have toAfter graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $30,000. The other option is to use $4,000 in savings to start your own consulting firm. You could earn an interest return of 5 percent on your savings. You choose to start your own consulting rm. At the end oftne first year, you add up all of your expenses and revenues. Your total includes $12,000 in rent, $1,000 in office supplies, $24,000 for office staff, and $4,500 in telecommunication expenses. Your explicit costs are $:|. Your implicit costs are $:|. The short-run production function for a manufacturer of wireless earbuds is shown at the right. Based on Input of Labour Total Output of Average this information, calculate the average product at each quantity of labour. (Your answers should be whole (workers per week) Wireless Earbuds Product numbers.) C 0 30 54 W N 72 84 n A 5 95 96The short-run production function for a manufacturer of wireless earbuds is shown at the right. Based on this information, at which point does marginal product begin to diminish? Input of Labour Total Output of (workers per week) Wireless Earbuds Between |and workers per week. 0 (Enter your answers in ascending order.) 20 55 80 DUIAWN- 100 110 115