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Output, Variable input and Costs (per day). Таcos Labor VC TC MC AVC АТС 50 1 120 420 0.00 105 165 230 4. 288 340 6. 385 420 8. 450 9. 460 10 23

Output, Variable input and Costs (per day). Таcos Labor VC TC MC AVC АТС 50 1 120 420 0.00 105 165 230 4. 288 340 6. 385 420 8. 450 9. 460 10 23

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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do not understand please help with both parts
2. You are thinking to start your food catering business by making rolled tacos, which are often called taquitos (corn tortillas) and flautas (flour tortillas). As suggested, one important step is to estimate startup costs and prepare the budget. Your estimate shows, on a daily basis, your fixed cost (FC), including rent, utility, fees and tax, is about $300 per day. Your variable cost (VC) is largely depending on the units of labor (variable input) you are going to use. Hiring one labor will cost you $120 per day. Use the information given, to finish the questions below. (1) The table below presents the cost structure of your taco business. The first two columns give you the number of your output or tacos (Y) and the units of labor inputs. To finish this table, you need to calculate variable cost (VC), total cost (TC), marginal cost (MC), average variable cost (AVC) and average total cost (ATC). Note: MC= ATC / AY. Output, Variable input and Costs (per day) Labor VC TC MC AVC АТС Таcos 50 1 120 420 0.00 105 165 3 230 4 288 5 340 6. 385 7 420 8 450 9. 460 10 (2) What is the shape of the daily marginal cost (MC) curve, the average variable cost (AVC) curve and the average total cost (ATC) curve? And why they look like that shape? After some study to your long-run average total cost, you find it has a similar shape as the short-run (daily) ATC curve. Why the long-run ATC curve has such a shape?
Transcribed Image Text:2. You are thinking to start your food catering business by making rolled tacos, which are often called taquitos (corn tortillas) and flautas (flour tortillas). As suggested, one important step is to estimate startup costs and prepare the budget. Your estimate shows, on a daily basis, your fixed cost (FC), including rent, utility, fees and tax, is about $300 per day. Your variable cost (VC) is largely depending on the units of labor (variable input) you are going to use. Hiring one labor will cost you $120 per day. Use the information given, to finish the questions below. (1) The table below presents the cost structure of your taco business. The first two columns give you the number of your output or tacos (Y) and the units of labor inputs. To finish this table, you need to calculate variable cost (VC), total cost (TC), marginal cost (MC), average variable cost (AVC) and average total cost (ATC). Note: MC= ATC / AY. Output, Variable input and Costs (per day) Labor VC TC MC AVC АТС Таcos 50 1 120 420 0.00 105 165 3 230 4 288 5 340 6. 385 7 420 8 450 9. 460 10 (2) What is the shape of the daily marginal cost (MC) curve, the average variable cost (AVC) curve and the average total cost (ATC) curve? And why they look like that shape? After some study to your long-run average total cost, you find it has a similar shape as the short-run (daily) ATC curve. Why the long-run ATC curve has such a shape?
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