Below is the transcription and explanation for the educational website:---### Cost Curves Plotting InstructionsTo plot the Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Cost (MC) curves on the graph, follow these instructions:1. **ATC Curve**: Use the green triangle symbol to represent the ATC curve. Plot the points on integers. For example, if the ATC of producing one pair of boots is $200, start your ATC curve at the point (1, 200).2. **AVC Curve**: Use the purple diamond symbol for the AVC curve. Similarly, plot the points on integers.3. **MC Curve**: Represent the MC curve using the orange square symbol. Plot these points between integers. For example, if the MC of increasing production from zero to one pair of boots is $80, start your MC curve at the point (0.5, 80).#### Note:- Ensure to plot your points in the desired order for line connection.- Line segments will automatically connect the points.### Graph Overview- **Axes**: - The y-axis represents COSTS in dollars per pair. - The x-axis represents QUANTITY in pairs of boots.- **Legend**: - **Green Triangle**: ATC - **Purple Diamond**: AVC - **Orange Square**: MCUse this graph to visualize the relationship between costs and quantity in production economics. ### Various Measures of CostDouglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company’s total cost of production at various production quantities.**Instructions:** Fill in the remaining cells of the following table.| Quantity (Pairs) | Total Cost (Dollars) | Marginal Cost (Dollars) | Fixed Cost (Dollars) | Variable Cost (Dollars) | Average Variable Cost (Dollars per pair) | Average Total Cost (Dollars per pair) ||------------------|----------------------|-------------------------|----------------------|-------------------------|------------------------------------------|---------------------------------------|| 0 | 120 | | | | | || 1 | 200 | | | | | || 2 | 240 | | | | | || 3 | 285 | | | | | || 4 | 340 | | | | | || 5 | 425 | | | | | || 6 | 540 | | | | | |**Graph Instructions:**- **Plot Douglas Fur’s average total cost (ATC) curve** using green points (triangle symbol).- **Plot its average variable cost (AVC) curve** using purple points (diamond symbol).- **Plot its marginal cost (MC) curve** using orange points (square symbol).**Hints for Plotting:**- For **ATC** and **AVC**, plot the points on the integer. For example, if the ATC of producing one pair of boots is $200, start by placing a green point at (1, 200).- For **MC**, plot the points between integers. For example, if the MC of increasing production from zero to one pair is $80, start by placing an orange square at (0.5, 80).**Note:** Plot your points in the order you would like them connected; line segments will connect the points automatically.

To find marginal costs, we subtract previous total cost from current total costs. Total cost = Fixed…

Douglas Fur is a small manufacturer of fake-fur boots in San Diego. 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 (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 1 200 240 285 4 340 425 540 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).)

Douglas Fur is a small manufacturer of fake-fur boots in San Diego. 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 (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 1 200 240 285 4 340 425 540 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).)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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