1. You are given the following information about the ABC Widget Company's short run costs: Quantity of Widgets Total Variable Cost Total Fixed Cost Total Cost s10 1 $1 2 $3 $13 $6 $10 3 $16 4 5 $25 $10 $21 1. 1. Find the average fixed cost of producing 5 widgets. 2. Is the marginal cost of the third widget greater than the average total cost of producing 2 widgets? Does the production of the third widget lead to an increase in average total cost or does it decrease average total cost? 3. Find the average total cost of producing 4 widgets. Find the marginal cost of producing the sixth widget
1. You are given the following information about the ABC Widget Company's short run costs: Quantity of Widgets Total Variable Cost Total Fixed Cost Total Cost s10 1 $1 2 $3 $13 $6 $10 3 $16 4 5 $25 $10 $21 1. 1. Find the average fixed cost of producing 5 widgets. 2. Is the marginal cost of the third widget greater than the average total cost of producing 2 widgets? Does the production of the third widget lead to an increase in average total cost or does it decrease average total cost? 3. Find the average total cost of producing 4 widgets. Find the marginal cost of producing the sixth widget
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. You are given the following information about the ABC Widget Company's short run costs:
Quantity of Widgets
Total Variable Cost
Total Fixed Cost
Total Cost
$10
1
$1
2
$3
$13
3
$6
$16
4
$10
$25
$10
$21
1.
1. Find the average fixed cost of producing 5 widgets.
2. Is the marginal cost of the third widget greater than the average total cost of producing
2 widgets? Does the production of the third widget lead to an increase in average total
cost or does it decrease average total cost?
3. Find the average total cost of producing 4 widgets.
Find the marginal cost of producing the sixth widget
1
Q3. what is market power? what are the ways in which a monpoly gains market power?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee9812e7-8e3c-4b60-9ee9-91827dfac3b5%2F28c7f5f3-14a7-48c5-907e-574111286518%2Ffs6ab4f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. You are given the following information about the ABC Widget Company's short run costs:
Quantity of Widgets
Total Variable Cost
Total Fixed Cost
Total Cost
$10
1
$1
2
$3
$13
3
$6
$16
4
$10
$25
$10
$21
1.
1. Find the average fixed cost of producing 5 widgets.
2. Is the marginal cost of the third widget greater than the average total cost of producing
2 widgets? Does the production of the third widget lead to an increase in average total
cost or does it decrease average total cost?
3. Find the average total cost of producing 4 widgets.
Find the marginal cost of producing the sixth widget
1
Q3. what is market power? what are the ways in which a monpoly gains market power?
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