4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Quantity (Houses Painted per Month) Variable Cost (Dollars) 10 2 3 20 40 80 5 160 6 320 7 640 The efficient scale is houses Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars)
4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Quantity (Houses Painted per Month) Variable Cost (Dollars) 10 2 3 20 40 80 5 160 6 320 7 640 The efficient scale is houses Average Fixed Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars)
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:4. Firm's Costs
Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs:
Quantity
(Houses Painted per Month)
Variable Cost
(Dollars)
10
2
3
20
40
80
5
160
6
320
7
640
The efficient scale is
houses
Average Fixed Cost Average Variable Cost Average Total Cost
(Dollars)
(Dollars)
(Dollars)
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