Accounting Complete the table and Graph the cost curves: Output (Q)/day Total Variable costs ($) Total costs (TC) ($) Marginal costs (MC) ($) Average Total costs (ATC) ($) Average Variable costs (AVC) ($) 0 0 635 -- ---- ---- 1 50 2 100 3 150 4 200 5 300 6 400 7 500 8 650 9 800 What is the dollar value of the fixed costs in this example? Why do marginal costs, average variable costs, average total cost have a “U” shape? That is, why do they start out high, get lower, and then higher again? For 7 units of output, what is the average fixed cost? Why does average fixed cost fall as a firm produces more of a good?
Accounting Complete the table and Graph the cost curves: Output (Q)/day Total Variable costs ($) Total costs (TC) ($) Marginal costs (MC) ($) Average Total costs (ATC) ($) Average Variable costs (AVC) ($) 0 0 635 -- ---- ---- 1 50 2 100 3 150 4 200 5 300 6 400 7 500 8 650 9 800 What is the dollar value of the fixed costs in this example? Why do marginal costs, average variable costs, average total cost have a “U” shape? That is, why do they start out high, get lower, and then higher again? For 7 units of output, what is the average fixed cost? Why does average fixed cost fall as a firm produces more of a good?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Accounting
Complete the table and Graph the cost
|
Output (Q)/day |
Total Variable costs ($) |
Total costs (TC) ($) |
Marginal costs (MC) ($) |
(ATC) ($) |
Average Variable costs ( ($) |
|
0 |
0 |
635 |
-- |
---- |
---- |
|
1 |
50 |
||||
|
2 |
100 |
||||
|
3 |
150 |
||||
|
4 |
200 |
||||
|
5 |
300 |
||||
|
6 |
400 |
||||
|
7 |
500 |
||||
|
8 |
650 |
||||
|
9 |
800 |
-
What is the dollar value of the fixed costs in this example?
-
Why do marginal costs, average variable costs, average total cost have a “U” shape? That is, why do they start out high, get lower, and then higher again?
-
For 7 units of output, what is the average fixed cost? Why does average fixed cost fall as a firm produces more of a good?
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