**Various Measures of Cost** Douglas Fur is a small manufacturer of fake-fur boots in Dallas. 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 (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 | 150 | | | | | | | 1 | 200 | | | | | | | 2 | 225 | | | | | | | 3 | 265 | | | | | | | 4 | 320 | | | | | | | 5 | 395 | | | | | | | 6 | 450 | | | | | | 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 the first two curves, plot the points for quantities zero through six. For the MC curve, plot the points for quantities one through six. At a quantity of zero, the MC of increasing production from zero to one pair of boots is $50, so you should start your MC curve at that point. **Note**: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
**Various Measures of Cost** Douglas Fur is a small manufacturer of fake-fur boots in Dallas. 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 (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 | 150 | | | | | | | 1 | 200 | | | | | | | 2 | 225 | | | | | | | 3 | 265 | | | | | | | 4 | 320 | | | | | | | 5 | 395 | | | | | | | 6 | 450 | | | | | | 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 the first two curves, plot the points for quantities zero through six. For the MC curve, plot the points for quantities one through six. At a quantity of zero, the MC of increasing production from zero to one pair of boots is $50, so you should start your MC curve at that point. **Note**: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:**Various Measures of Cost**
Douglas Fur is a small manufacturer of fake-fur boots in Dallas. 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 (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 | 150 | | | | | |
| 1 | 200 | | | | | |
| 2 | 225 | | | | | |
| 3 | 265 | | | | | |
| 4 | 320 | | | | | |
| 5 | 395 | | | | | |
| 6 | 450 | | | | | |
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 the first two curves, plot the points for quantities zero through six. For the MC curve, plot the points for quantities one through six. At a quantity of zero, the MC of increasing production from zero to one pair of boots is $50, so you should start your MC curve at that point.
**Note**: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
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