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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Question

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

(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).)
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
200
175
ATC
150
125
AVC
100
MC
75
50
25
+
1
2
4
6.
COSTS (Dollars per pair)

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