3. The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for total cost, average variable cost, average total cost, and marginal cost. Variable Fixed Total Average Variable Average Total Quantity Cost Cost Cost Cost Cost Marginal Cost 0 0 $30 30 1 $10 $30 2 $25 $30 3 $45 $30 455 40 10 40 55 12.5 27.5 15 15 10 75 15 25 20 4 $70 $30 100 17.5 25 25 25 5 $100 $30 130 20 26 30 6 $135 $30 165 22.5 27.5 35 On two separate sets of axes, draw the Total Cost Curves (TC, TVC, TFC) and the Per-Unit Cost Curves (MC, ATC, AVC). Note that there is no "inflection point" on these curves - why is that?
3. The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for total cost, average variable cost, average total cost, and marginal cost. Variable Fixed Total Average Variable Average Total Quantity Cost Cost Cost Cost Cost Marginal Cost 0 0 $30 30 1 $10 $30 2 $25 $30 3 $45 $30 455 40 10 40 55 12.5 27.5 15 15 10 75 15 25 20 4 $70 $30 100 17.5 25 25 25 5 $100 $30 130 20 26 30 6 $135 $30 165 22.5 27.5 35 On two separate sets of axes, draw the Total Cost Curves (TC, TVC, TFC) and the Per-Unit Cost Curves (MC, ATC, AVC). Note that there is no "inflection point" on these curves - why is that?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for total cost,
Transcribed Image Text:3. The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for
total cost, average variable cost, average total cost, and marginal cost.
Average
Variable Fixed
Total
Variable
Average
Total
Quantity
Cost
Cost
Cost
Cost
Cost
Marginal
Cost
0
0
$30
30
1
$10
$30
40
10
40
10
2
$25
$30
3
$45
$30
55
55
12.5
27.5
15
75
15
25
20
4
$70
$30
100
17.5
25
25
5
$100
$30
130
20
26
30
6
$135
$30
165
22.5
27.5
35
On two separate sets of axes, draw the Total Cost Curves (TC, TVC, TFC) and the Per-Unit
Cost Curves (MC, ATC, AVC).
Note that there is no "inflection point" on these curves - why is that?
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