Given are the formulas for computing. Read the instructions below and do as indicated. Answer the questions below. Then make graphs. (You don't need to post the answers for the computation. What I need are the graphs) • For graphing paper #1Y axis = total fixed cost (TFC), total variable cost (TVC), and total cost (TC) X axis = output• For graphing paper #2 Y axis = average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost X axis = output COSTS OF PRODUCTION FORMULASTotal cost (TC) = total fixed cost (TFC) + total variable cost(TVC) Total Product (TP)- Average fixed cost (AFC) = TFC ÷ output or totalproduct or quantityAverage variable cost = TVC ÷ output or totalproduct or quantity- Marginal cost (MC)= change in total Cost (TC) ÷change in TP or output- Average total cost (ATC) = AFC + AVC or- Average Total Cost = TC ÷ TP- Total Revenue (TR) = price x TP-%3D-- Total Profit/Loss = TR – TC-- Break even : TR – TC = 0Hypothetical problemA corn farmer produces 300 sacks of corn at 50 kgs./sack.Prevailing price of corn/sack is P1,200.He incurred the following annual expenses (P):Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500;insurance @3,000; interest on loan @4,200; entrepreneuship@7,000;salaries/wages@10,000; taxes@4,600; depreciation@2,600Variable costs: seeds@5,000; fertilizer@10,500: labor@18,000;pesticides@8,000; tractor@3,000; transportation,@3,500.Compute for:1. Total Cost, Total Fixed Cost, Total Variable Cost2. Average total cost, average fixed cost, average variable cost3. Total Revenue, average revenue4. Total profit or Loss

Graphical analysis of cost of production is very important as it enables us to gain important…

Answered: For graphing paper #1 Y axis = total…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Given are the formulas for computing. Read the instructions below and do as indicated. Answer the questions below. Then make graphs. (You don't need to post the answers for the computation. What I need are the graphs)

• For graphing paper #1

Y axis = total fixed cost (TFC), total variable cost (TVC), and total cost (TC)
X axis = output

• For graphing paper #2
Y axis = average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost
X axis = output

COSTS OF PRODUCTION FORMULAS
Total cost (TC) = total fixed cost (TFC) + total variable cost
(TVC) Total Product (TP)
- Average fixed cost (AFC) = TFC ÷ output or total
product or quantity
Average variable cost = TVC ÷ output or total
product or quantity
- Marginal cost (MC)= change in total Cost (TC) ÷
change in TP or output
- Average total cost (ATC) = AFC + AVC or
- Average Total Cost = TC ÷ TP
- Total Revenue (TR) = price x TP
-
%3D
-
- Total Profit/Loss = TR – TC
-
- Break even : TR – TC = 0
Hypothetical problem
A corn farmer produces 300 sacks of corn at 50 kgs./sack.
Prevailing price of corn/sack is P1,200.
He incurred the following annual expenses (P):
Fixed costs: land rent @5,000; irrigation fee@3,000; warehouse @2,500;
insurance @3,000; interest on loan @4,200; entrepreneuship@7,000;
salaries/wages@10,000; taxes@4,600; depreciation@2,600
Variable costs: seeds@5,000; fertilizer@10,500: labor@18,000;
pesticides@8,000; tractor@3,000; transportation,@3,500.
Compute for:
1. Total Cost, Total Fixed Cost, Total Variable Cost
2. Average total cost, average fixed cost, average variable cost
3. Total Revenue, average revenue
4. Total profit or Loss

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions