Use the variable cost information in the following table to caleulate average variable cost and average cost (assume fixed cost is $350), and then use this data to answer the questions that follow. Quantity Produced Fixed Cost Variable Cost Average Variable Cost Average Total Cost 10 $350 $100 20 $350 $180 30 $350 $240 40 $350 $300 50 $350 $450 60 $350 $630 70 $350 $840 1. Fill in the table above. 2. Give one example of a price at which this firm would want to produce and sell output in both the long run and the short run. 3. Give an example of a price at which this firm would want to produce and sell output in neither the long run nor the short run. 4. Give an example of a price at which this firm would want to produce and sell output in the short run, but not in the long run.
Use the variable cost information in the following table to caleulate average variable cost and average cost (assume fixed cost is $350), and then use this data to answer the questions that follow. Quantity Produced Fixed Cost Variable Cost Average Variable Cost Average Total Cost 10 $350 $100 20 $350 $180 30 $350 $240 40 $350 $300 50 $350 $450 60 $350 $630 70 $350 $840 1. Fill in the table above. 2. Give one example of a price at which this firm would want to produce and sell output in both the long run and the short run. 3. Give an example of a price at which this firm would want to produce and sell output in neither the long run nor the short run. 4. Give an example of a price at which this firm would want to produce and sell output in the short run, but not in the long run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 1: Variable Cost
Use the variable cost information in the following table to calculate average variable cost
and average cost (assume fixed cost is $350), and then use this data to answer the questions
that follow.
Quantity Produced
Fixed Cost
Variable Cost
Average Variable Cost
Average Total Cost
10
$350
$100
20
$350
$180
30
$350
$240
40
$350
$300
50
$350
$450
60
$350
$630
70
$350
$840
1. Fill in the table above.
2. Give one example of a price at which this firm would want to produce and sell output
in both the long run and the short run.
3. Give an example of a price at which this firm would want to produce and sell output
in neither the long run nor the short run.
4. Give an example of a price at which this firm would want to produce and sell output
in the short run, but not in the long run.
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