9. Working with Numbers and Graphs Q9 If total variable cost is $120 and average variable cost is $10, quantity of output equals units. Now, consider the following data: Quantity of Output Total Cost (Units) (Dollars) 3 60 4. 75 The marginal cost of producing the fourth unit is s If total variable cost is $18 when quantity of output equals three units, then average fixed cost is s at this quantity. Which of the following must continuously decrease as quantity of output increases? O Marginal cost O Average variable cost O Average fixed cost

9. Working with Numbers and Graphs Q9 If total variable cost is $120 and average variable cost is $10, quantity of output equals units. Now, consider the following data: Quantity of Output Total Cost (Units) (Dollars) 3 60 4. 75 The marginal cost of producing the fourth unit is s If total variable cost is $18 when quantity of output equals three units, then average fixed cost is s at this quantity. Which of the following must continuously decrease as quantity of output increases? O Marginal cost O Average variable cost O Average fixed cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Chicago. 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) 0 120 — — 1 200 2 240 3 285 4 340 5 425 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…
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