Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
ii) Is this firm in a short-run or long-run horizon and how can you tell? Explain in a concise sentence or two
![Q2.
Number of Cakes
0
1
2
3
4
VC
MC
AVC FC
0
N/A
N/A
50
30
30
30
50
50
20
25
50
75
25
25
50
105 30 26.25 50
TC
ATC
50 N/A
80
80
100
50
125 41.67
155
38.75
i) Consider the cake-maker above. Fill in the table and show equations used in the space below. (Hint:
You can start with any cell with an answer and fill in the others in any direction, like a sudoku. Use the
definitions for Average, Total, Variable, Marginal, and Fixed costs from the notes or text)
ii)Is this firm in a short-run or long-run horizon and how can you tell? Explain in a concise sentence or
two.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cfe5a42-fad0-48f0-bd0b-6d641e339c1e%2Fb659c89b-5ac8-4b54-b0c8-1aa0879fe4af%2Fc4dj1vs_processed.png&w=3840&q=75)
Transcribed Image Text:Q2.
Number of Cakes
0
1
2
3
4
VC
MC
AVC FC
0
N/A
N/A
50
30
30
30
50
50
20
25
50
75
25
25
50
105 30 26.25 50
TC
ATC
50 N/A
80
80
100
50
125 41.67
155
38.75
i) Consider the cake-maker above. Fill in the table and show equations used in the space below. (Hint:
You can start with any cell with an answer and fill in the others in any direction, like a sudoku. Use the
definitions for Average, Total, Variable, Marginal, and Fixed costs from the notes or text)
ii)Is this firm in a short-run or long-run horizon and how can you tell? Explain in a concise sentence or
two.
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