# 4. Various Measures of CostDouglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company’s total cost of production at various production quantities.**Table: Production Costs**| 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 | 210 | | | | | || 2 | 270 | | | | | || 3 | 315 | | | | | || 4 | 380 | | | | | || 5 | 475 | | | | | || 6 | 630 | | | | | |**Instructions:** Fill in the remaining cells of the following table.This table serves as a foundational learning tool in understanding various cost calculations related to production, such as marginal cost, fixed and variable costs, along with average variable and average total costs. ### Instructions for Plotting Cost CurvesOn 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 $210, so you should start your ATC curve by placing a green point at (1, 210).- For MC, plot the points between the integers; for example, the MC of increasing production from zero to one pair of boots is $90, so you should start your MC curve by placing an orange square at (0.5, 90).**Graph Explanation:**- **X-Axis:** Quantity (Pairs of boots)- **Y-Axis:** Costs (Dollars per pair)- **Legend:** - ATC: Average Total Cost (Green Triangle) - AVC: Average Variable Cost (Purple Diamond) - MC: Marginal Cost (Orange Square)**Note:** Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Total cost (TC) at zero level of out is the total fixed at cost at each level of output. Thus, fixed…

Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) 120 1 210 2 270 3 315 4 380 475 6 630

Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) 120 1 210 2 270 3 315 4 380 475 6 630

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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