The table below shows the cost data of a furniture manufacturer named Cindy’s Custom Made.
a) Complete the table, assuming that labour and materials cost $8 an hour. For all $ amounts, round your answers to the nearest whole number.
| Output of Chairs |
Total Hours |
Average Hours per Chair |
Marginal Hours per Chair |
TVC($) | TFC($) | TC($) | MC($) | ||
| 1 | 6 | 180 | |||||||
| 2 | 8 | ||||||||
| 3 | 9 | ||||||||
| 4 | 16 | ||||||||
| 5 | 25 | ||||||||
| 6 | 36 |
b) What is the most productive output?
Most productive output: chairs.
c) What are AVC and ATC at this quantity?
AVC: $
ATC: $
d) What is the output at economic capacity?
Economic capacity: chairs.
The table below shows the cost data of a furniture manufacturer named Cindy’s Custom Made.
a) Complete the table, assuming that labour and materials cost $8 an hour. For all $ amounts, round your answers to the nearest whole number.
| Output of Chairs |
Total Hours |
Average Hours per Chair |
Marginal Hours per Chair |
TVC($) | AVC($) | TFC($) | TC($) | ATC($) | MC($) |
| 1 | 6 | 180 | |||||||
| 2 | 8 | ||||||||
| 3 | 9 | ||||||||
| 4 | 16 | ||||||||
| 5 | 25 | ||||||||
| 6 | 36 |
b) What is the most productive output?
Most productive output: chairs.
c) What are AVC and ATC at this quantity?
AVC: $
ATC: $
d) What is the output at economic capacity?
Economic capacity: chairs.
The table below shows the cost data of a furniture manufacturer named Cindy’s Custom Made.
a) Complete the table, assuming that labour and materials cost $8 an hour. For all $ amounts, round your answers to the nearest whole number.
Output
of Chairs Total
Hours(1,2,3,4,5,6)
Average
Hours
per Chair Marginal
Hours
per Chair TVC($) AVC($) TFC($) TC($) ATC($) MC($)
b) What is the most productive output?
Most productive output:
chairs.
c) What are AVC and ATC at this quantity?
AVC: $
ATC: $
d) What is the output at economic capacity?
Economic capacity:
chairs.
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