Answered: Douglas Fur is a small manufacturer of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

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.

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.

4. 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
(Dollars per pair)
(Pairs)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars per pair)
120
120
80
1
200
120
80
80
200
40
2
240
120
120
60
120
45
285
120
165
55
95
55
4
340
120
220
55
85
85
5
425
120
305
61
85
115
6
540
120
420
70
90
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.
200
175
ATC
150
125
AVC
100
75
MC
50
25
1
2
3
4
5
QUANTITY (Pairs of boots)
COSTS (Dollars per pair)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions