2. The table below shows a car manufacturer's total cost of producing cars. Review the data provided and answer the questions that follow 国 Q TC TVC AVC AFC ATC MC $500,000 540,000 e 560,000 e 570,000 e 590,000 e 620,000 660,000 e 720,000- 800,0004 e 920,000 e 1,100,000 1 24 3e to 6 to ge 10 For each level of output, calculate the total variable cost [TVC], the average variable cost [AVC), the average fixed cost [AFC], the average total cost [ATC], and the marginal cost [MC]. Show the first calculation for each missing column of data. b. What is this manufacturer's fixed cost? Explain how you derived this. Create a single, well-labeled diagram that shows the manufacturer's AVC, ATC, and MC curves. a. С. 7.7

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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2. The table below shows a car manufacturer's total cost of producing cars. Review the data provided
and answer the questions that follow
国
Q
TC
TVC
AVC
AFC
ATC
MCe
$500,000
540,000 e
560,000 e
570,000 e
590,000 e
620,000
660,000 e
720,000
800,000 e
920,000 e
1,100,000
2e
4
to
50
6
ge
to
10
For each level of output, calculate the total variable cost [TVC], the average variable cost [AVC),
the average fixed cost [AFC], the average total cost [ATC], and the marginal cost [MC]. Show the
first calculation for each missing column of data.
b. What is this manufacturer's fixed cost? Explain how you derived this.
Create a single, well-labeled diagram that shows the manufacturer's AVC, ATC, and MC curves.
a.
С.
Transcribed Image Text:2. The table below shows a car manufacturer's total cost of producing cars. Review the data provided and answer the questions that follow 国 Q TC TVC AVC AFC ATC MCe $500,000 540,000 e 560,000 e 570,000 e 590,000 e 620,000 660,000 e 720,000 800,000 e 920,000 e 1,100,000 2e 4 to 50 6 ge to 10 For each level of output, calculate the total variable cost [TVC], the average variable cost [AVC), the average fixed cost [AFC], the average total cost [ATC], and the marginal cost [MC]. Show the first calculation for each missing column of data. b. What is this manufacturer's fixed cost? Explain how you derived this. Create a single, well-labeled diagram that shows the manufacturer's AVC, ATC, and MC curves. a. С.
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