**Various Measures of Cost**Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company’s total cost of production at various production quantities.**Table: Cost of Production**| Quantity (Pairs) | Total Cost (Dollars) | Marginal Cost (Dollars) | Fixed Cost (Dollars) | Variable Cost (Dollars) | Average Variable Cost (Dollars per pair) | Average Total Cost (Dollars per pair) ||------------------|----------------------|-------------------------|----------------------|-------------------------|------------------------------------------|----------------------------------------|| 0 | 120 | | | | | || 1 | 200 | | | | | || 2 | 240 | | | | | || 3 | 285 | | | | | || 4 | 340 | | | | | || 5 | 425 | | | | | || 6 | 540 | | | | | |**Instructions for Graph Plotting:**On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol).**Hints:**- For ATC and AVC, plot the points on the integer. For example, the ATC of producing one pair of boots is $200, so start your ATC curve by placing a green point at (1, 200).- For MC, plot the points between the integers. For example, the MC of increasing production from zero to one pair of boots is $80, so start your MC curve by placing an orange square at (0.5, 80).**Note:** Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. The text provides instructions for plotting cost curves on a graph for an educational context. Here's a transcription and explanation of the elements visible in the provided image:---**Instructions:**1. **Plotting Average Total Cost (ATC):** - Use green triangles to mark the points on the graph. - Example: If the ATC of producing one pair of boots is $200, place a green triangle at (1, 200).2. **Plotting Average Variable Cost (AVC):** - Use purple diamonds to indicate AVC points on the graph. - Place points on the integer values.3. **Plotting Marginal Cost (MC):** - Use orange squares for MC points. - Plot these points between the integers. - Example: If the MC of increasing production from zero to one pair of boots is $80, place an orange square at (0.5, 80).**Note:** Plot points in the desired order of connection. Line segments will connect them automatically.---**Graph Explanation:**- **Axes:** - **X-axis:** Represents the quantity of boots (in pairs), with values ranging from 0 to 6. - **Y-axis:** Represents the costs, measured in dollars per pair, ranging from 0 to 200.- **Legend:** - **Green Triangle:** Represents Average Total Cost (ATC). - **Purple Diamond:** Represents Average Variable Cost (AVC). - **Orange Square:** Represents Marginal Cost (MC).This setup allows for a visual representation of cost curves associated with economic production, facilitating a better understanding of cost behavior in relation to output quantity.

Table is completed by using below formula is shown below. MC=Change in TCChange in Q FC=TC at Q=0…

4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 1 200 240 3 285 4 340 425 6 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AAAAAA

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC