a) What is Quantity of cars TC $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000 800,000 920,000 1,100,000 this 0 1 2 3 4 5 6 7 8 9 10 manufacturer's fixed cost? b) For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? c) For each level of output, calculate this manufacturer's marginal cost (MC). d) On one diagram, draw the manufacturer's AVC, ATC, and MC curves.

a) What is Quantity of cars TC $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000 800,000 920,000 1,100,000 this 0 1 2 3 4 5 6 7 8 9 10 manufacturer's fixed cost? b) For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? c) For each level of output, calculate this manufacturer's marginal cost (MC). d) On one diagram, draw the manufacturer's AVC, ATC, and MC curves.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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