Plot AFC, AVC, ATC, and MC on a graph. Explain what happens to each one as output increases and why. ### Cost Analysis Table| Units of Fixed Input (K) | Labor Hours (L) | Output (Q) | TFC | TVC | TC | AFC | AVC | ATC | MC ||--------------------------|-----------------|------------|-----|-----|-----|-------|------|-------|------|| 3 | 0 | 0 | 90 | 0 | 90 | 0 | 0 | 0 | 0 || 3 | 1 | 4 | 90 | 20 | 110 | 2.25 | 1/2 | 11/4 | 1/2 || 3 | 2 | 90 | 90 | 40 | 130 | 1 | 11/25| 13/9 | 10/43|| 3 | 3 | 160 | 90 | 60 | 150 | 9/16 | 3/8 | 15/16 | 2/7 || 3 | 4 | 200 | 90 | 80 | 170 | 9/20 | 2/5 | 17/20 | 1/2 || 3 | 5 | 230 | 90 | 100 | 190 | 9/23 | 10/23| 19/23 | 2/3 || 3 | 6 | 250 | 90 | 120 | 210 | 9/25 | 12/25| 21/25 | 1 || 3 | 7 | 260 | 90 | 140 | 230 | 9/26 | 7/13 | 25/26 | 2 || 3 | 8 | 265 | 90 | 160 | 250 | 18/53 | 3/5 | 249/265| 4 |#### Instructions:1. **Plot AFC, AVC, ATC, and MC on a Graph.** - **AFC (Average Fixed Cost

AFC (Average fixed cost) is the per-unit fixed cost of production. It's calculated by dividing total…

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Plot AFC, AVC, ATC, and MC on a graph. Explain what happens to each one as output increases and why

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

Plot AFC, AVC, ATC, and MC on a graph. Explain what happens to each one as output increases and why.

### Cost Analysis Table

| Units of Fixed Input (K) | Labor Hours (L) | Output (Q) | TFC | TVC | TC | AFC | AVC | ATC | MC |
|--------------------------|-----------------|------------|-----|-----|-----|-------|------|-------|------|
| 3 | 0 | 0 | 90 | 0 | 90 | 0 | 0 | 0 | 0 |
| 3 | 1 | 4 | 90 | 20 | 110 | 2.25 | 1/2 | 11/4 | 1/2 |
| 3 | 2 | 90 | 90 | 40 | 130 | 1 | 11/25| 13/9 | 10/43|
| 3 | 3 | 160 | 90 | 60 | 150 | 9/16 | 3/8 | 15/16 | 2/7 |
| 3 | 4 | 200 | 90 | 80 | 170 | 9/20 | 2/5 | 17/20 | 1/2 |
| 3 | 5 | 230 | 90 | 100 | 190 | 9/23 | 10/23| 19/23 | 2/3 |
| 3 | 6 | 250 | 90 | 120 | 210 | 9/25 | 12/25| 21/25 | 1 |
| 3 | 7 | 260 | 90 | 140 | 230 | 9/26 | 7/13 | 25/26 | 2 |
| 3 | 8 | 265 | 90 | 160 | 250 | 18/53 | 3/5 | 249/265| 4 |

#### Instructions:

1. **Plot AFC, AVC, ATC, and MC on a Graph.**
- **AFC (Average Fixed Cost

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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