Homework Help is Here – Start Your Trial Now!
Business
Economics
Douglas Fur is a small manufacturer of fake-fur boots in Houston. The following table shows the company's total cost of production at various production quantities.

Douglas Fur is a small manufacturer of fake-fur boots in Houston. The following table shows the company's total cost of production at various production quantities.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
100%
How do I solve this chart
**Short-run Cost Formulas** Douglas Fur is a small manufacturer of fake-fur boots in Houston. The following table shows the company's total cost of production at various production quantities. | Total Product (Pairs) | Total Cost (Dollars) | Marginal Cost (Dollars) | Total Fixed Cost (Dollars) | Total Variable Cost (Dollars) | Average Variable Cost (Dollars per pair) | Average Total Cost (Dollars per pair) | |-----------------------|----------------------|-------------------------|----------------------------|-------------------------------|-----------------------------------------|--------------------------------------| | 0 | 60 | | | | | | | 1 | 160 | | | | | | | 2 | 220 | | | | | | | 3 | 270 | | | | | | | 4 | 345 | | | | | | | 5 | 410 | | | | | | | 6 | 630 | | | | | | **Instructions for Graphing:** 1. **Plotting the Average Total Cost Curve (ATC):** - Use the green points (triangle symbol). - For example, the average total cost of producing one pair of boots is $160, so place a green point at (1, 160). 2. **Plotting the Average Variable Cost Curve (AVC):** - Use the purple points (diamond symbol). 3. **Plotting the Marginal Cost Curve (MC):** - Use the orange points (square symbol). - Plot the points between integers. For instance, the marginal cost of increasing production from zero to one pair of boots is $100, so start the marginal cost curve by placing an orange square at (0.5, 100).
Transcribed Image Text:**Short-run Cost Formulas** Douglas Fur is a small manufacturer of fake-fur boots in Houston. The following table shows the company's total cost of production at various production quantities. | Total Product (Pairs) | Total Cost (Dollars) | Marginal Cost (Dollars) | Total Fixed Cost (Dollars) | Total Variable Cost (Dollars) | Average Variable Cost (Dollars per pair) | Average Total Cost (Dollars per pair) | |-----------------------|----------------------|-------------------------|----------------------------|-------------------------------|-----------------------------------------|--------------------------------------| | 0 | 60 | | | | | | | 1 | 160 | | | | | | | 2 | 220 | | | | | | | 3 | 270 | | | | | | | 4 | 345 | | | | | | | 5 | 410 | | | | | | | 6 | 630 | | | | | | **Instructions for Graphing:** 1. **Plotting the Average Total Cost Curve (ATC):** - Use the green points (triangle symbol). - For example, the average total cost of producing one pair of boots is $160, so place a green point at (1, 160). 2. **Plotting the Average Variable Cost Curve (AVC):** - Use the purple points (diamond symbol). 3. **Plotting the Marginal Cost Curve (MC):** - Use the orange points (square symbol). - Plot the points between integers. For instance, the marginal cost of increasing production from zero to one pair of boots is $100, so start the marginal cost curve by placing an orange square at (0.5, 100).
**Educational Resource** Title: Analyzing Cost Curves in Economics --- **Homework (Ch 07)** **Instructions:** 1. The table provides cost data for different levels of production quantity: | Quantity | Total Cost | |----------|------------| | 0 | 60 | | 1 | 120 | | 2 | 220 | | 3 | 350 | | 4 | 490 | | 5 | 630 | 2. Using the data, construct the average total cost curve (ATC): - Use green points (triangle symbol) to plot ATC, placing the points on the integer values. 3. Plot the average variable cost curve (AVC) using a similar method with its own set of points. 4. Lastly, plot the marginal cost curve (MC) using orange points (square symbol): - For ATC and AVC, interpolate between integers if necessary. - For MC, plot at midpoints between integers, starting at $10, for example. 5. Note: - Ensure that your points depict the order correctly, as line segments will connect them automatically in the graph. --- **Graph/Diagram Explanation:** The graph component consists of an area where students will manually input their points to generate the cost curves. Each curve must be clearly marked and differentiated by using different symbols. - **Average Total Cost (ATC) Curve**: Green triangle symbols should be used. Ensure that your points reflect the calculated ATC values for each production level. - **Average Variable Cost (AVC) Curve**: Similar methodology with its designated marker, providing insights into cost efficiency. - **Marginal Cost (MC) Curve**: Uses orange square symbols, with placement between production levels to show incremental cost changes. Through accurate plotting, this exercise aids in understanding the relationships and dynamics involved in cost structures within economics.
Transcribed Image Text:**Educational Resource** Title: Analyzing Cost Curves in Economics --- **Homework (Ch 07)** **Instructions:** 1. The table provides cost data for different levels of production quantity: | Quantity | Total Cost | |----------|------------| | 0 | 60 | | 1 | 120 | | 2 | 220 | | 3 | 350 | | 4 | 490 | | 5 | 630 | 2. Using the data, construct the average total cost curve (ATC): - Use green points (triangle symbol) to plot ATC, placing the points on the integer values. 3. Plot the average variable cost curve (AVC) using a similar method with its own set of points. 4. Lastly, plot the marginal cost curve (MC) using orange points (square symbol): - For ATC and AVC, interpolate between integers if necessary. - For MC, plot at midpoints between integers, starting at $10, for example. 5. Note: - Ensure that your points depict the order correctly, as line segments will connect them automatically in the graph. --- **Graph/Diagram Explanation:** The graph component consists of an area where students will manually input their points to generate the cost curves. Each curve must be clearly marked and differentiated by using different symbols. - **Average Total Cost (ATC) Curve**: Green triangle symbols should be used. Ensure that your points reflect the calculated ATC values for each production level. - **Average Variable Cost (AVC) Curve**: Similar methodology with its designated marker, providing insights into cost efficiency. - **Marginal Cost (MC) Curve**: Uses orange square symbols, with placement between production levels to show incremental cost changes. Through accurate plotting, this exercise aids in understanding the relationships and dynamics involved in cost structures within economics.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Correlation Coefficient
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.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS