Douglas Fur is a small manufacturer of fake-fur boots in New York City. The following table shows the company’s total cost of production at various production quantities. 4. Various measures of costDouglas Fur is a small manufacturer of fake-fur boots in New York City. The following table shows the company's total cost of production at variousproduction quantities.Fill in the remaining cells of the following table.Average Total Cost(Dollars per pair)QuantityTotal CostMarginal CostFixed CostVariable CostAverage Variable Cost(Pairs)(Dollars)(Dollars)(Dollars)(Dollars)(Dollars per pair)120801200402240453285554340854251156540MMMALO (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: ForATC 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 byplacing 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 ofboots 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.200175ATC150125AVC100MC755025+1246.COSTS (Dollars per pair)

The relationship b/w various cost is given below: Total Cost = Total Fixed Cost(TFC) + Total…

Fill in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 80 1 200 40 2 240 45 3 285 55 4 340 85 425 115 6 540

Fill in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 120 80 1 200 40 2 240 45 3 285 55 4 340 85 425 115 6 540

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely) competitive industry.
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What is the term for the minimum level of output a firm must produce to cover its variable costs in the short run? a) Shutdown point b) Marginal cost point c) Average cost point d) Total cost point
A firm produces a product which it sells in a perfectly competitive market. The price of the product is R120 per unit and the firm's cost structure is given in the table below. Use the table below to answer the question Units Fixed cost Variable cost Total cost Average cost Marginal cost produced (Q) (FC) (VC) (TC) (AVC) (MC) 48 0 1 2 3 4 5 6 100 564 216 88 How many units must the firm produce in order to maximise profits? a) 6 units b) 2 units c) 5 units d) 4 units 32 104
Classify the following milk bar short-run costs as fixed cost or variable cost Milk truck Fruit freezer Cost of milk sold each day ii) Assuming the following are the costs of your milk bar after the end of the second week answer the question below based on the following information. Fixed cost increased from 100 to 150 Variable cost increases from 220 to 300 Milk output increases from 450 to 620 a) What is the average total cost during the second week. Show your work b) What is the marginal cost. Show your work
A firm has the following revenue and cost functions. TR= 120 Q - Q² TR= ½ Q² + 30 Q + 10 Determine the quantity level at which the firm maximizes it's total profit. ( Hint ;use marginal revenue=marginal cost) (300 word with working)
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A firm has the following revenue and cost functions. TR = 90 Q – Q2 TC = 2Q 2+ 30 Q Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)
Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the Industry, every firm in the industry is Identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) PRICE (Dollars per por 100 90 80 70 60 50 40 30 20 100 10 50 0 80 70 60 50 40 30 20 10 0 The following diagram shows the market demand for copper. 0 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the Industry supply curve.) Next, use the purple points (diamond symbol) to plat the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run Industry supply curve when there are 40 firms. MC D 0 5 10 ATC H AVC D 0 15…
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The following cost data is for a firm which is selling in a perfectly competitive market: Average fixed Average variable Average total Total Marginal cost S17 product cost S100.00 50.00 33.33 25.00 20.00 cost $17.00 cost $117.00 66.00 47.33 39.25 34.00 2 16.00 15 3 4 15.00 14.25 14.00 14.00 15.71 17.50 13 12 13 16.67 14.29 12.50 11.11 10.00 9.09 7.33 30.67 30.00 14 26 30 35 7 8. 9. 10 11 30.00 30.55 31.60 33.09 35.00 19.44 21.60 41 24.00 48 12 26.67 56 Refer to the data above. If there were 600 identical firms in this industry and total or market demand is as shown below, equilibrium price will be: Quantity demanded 3,000 6,000 9,000 11,000 14,000 19,500 Price $50 42 36 32 20 13 $36