1. Complete the following table. Quantity Total Cost 0 500 1 700 2 800 3 850 4 1000 5 1300 TVC TFC MC AFC AVC ATC 2. Given the following information, answer the question below. Quantity 0 1 2 3 4 5 Total Variable Cost 0 50 50 80 100 140 200 When the quantity is 2, suppose the average fixed costs are 1000. Calculate the average total cost when quantity is 5. Show your work. 3. Given the following table, answer the questions below. Quantity Average 0 1 2 3 4 5 1200 650 500 450 440 Total Cost a) If the firm's total fixed cost = 1000, what is their total variable cost when producing 3 units? Show your work. b) Find the marginal cost of units #1 and #2. c) Find the average variable cost when producing 3 units. Show your work. 4. Calculate the total costs, given a firm Total Fixed cost of 400. Quantity 0 1 2 3 4 5 Marginal 100 70 50 80 120 Cost Total Cost
1. Complete the following table. Quantity Total Cost 0 500 1 700 2 800 3 850 4 1000 5 1300 TVC TFC MC AFC AVC ATC 2. Given the following information, answer the question below. Quantity 0 1 2 3 4 5 Total Variable Cost 0 50 50 80 100 140 200 When the quantity is 2, suppose the average fixed costs are 1000. Calculate the average total cost when quantity is 5. Show your work. 3. Given the following table, answer the questions below. Quantity Average 0 1 2 3 4 5 1200 650 500 450 440 Total Cost a) If the firm's total fixed cost = 1000, what is their total variable cost when producing 3 units? Show your work. b) Find the marginal cost of units #1 and #2. c) Find the average variable cost when producing 3 units. Show your work. 4. Calculate the total costs, given a firm Total Fixed cost of 400. Quantity 0 1 2 3 4 5 Marginal 100 70 50 80 120 Cost Total Cost
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?
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Transcribed Image Text:1. Complete the following table.
Quantity Total Cost
0
500
1
700
2
800
3
850
4
1000
5
1300
TVC
TFC
MC
AFC
AVC
ATC
2. Given the following information, answer the question below.
Quantity
0
1
2
3
4
5
Total
Variable
Cost
0
50
50
80
100
140
200
When the quantity is 2, suppose the average fixed costs are 1000. Calculate the average total cost when quantity is
5. Show your work.
Transcribed Image Text:3. Given the following table, answer the questions below.
Quantity
Average
0
1
2
3
4
5
1200
650
500
450
440
Total Cost
a) If the firm's total fixed cost = 1000, what is their total variable cost when producing 3 units? Show your work.
b) Find the marginal cost of units #1 and #2.
c) Find the average variable cost when producing 3 units. Show your work.
4. Calculate the total costs, given a firm Total Fixed cost of 400.
Quantity
0
1
2
3
4
5
Marginal
100
70
50
80
120
Cost
Total Cost
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