**Question 2**The following graph illustrates the average variable cost (AVC), average total cost (ATC), and marginal cost (MC) curves of a local restaurant whose signature dish is chicken parmigiana. Use the information from the graph to find the values of the following costs at an output level of 30 plates of chicken parmigiana: MC, AVC, ATC, AFC, VC, TC, and FC.### Graph ExplanationThe graph is a cost curve that shows the relationship between costs and the quantity of plates of chicken parmigiana produced. - **Axes**: - The vertical axis represents costs in dollars ($). - The horizontal axis represents the quantity, specifically the number of plates of chicken parmigiana.- **Curves**: - **MC (Marginal Cost)**: This curve is shown in blue and indicates the cost of producing one additional unit. - **AVC (Average Variable Cost)**: This curve is shown in yellow and represents the average cost of variable inputs per unit. - **ATC (Average Total Cost)**: This curve is green and shows the average total cost per unit, including both fixed and variable costs.- **Data Points at 30 Plates**: - At 30 plates, the AVC is approximately $2.20. - The ATC is approximately $2.40. - The MC is approximately $5.### Figure 12The graph is labeled as Figure 12, providing a visual representation of the cost structures related to producing different quantities of chicken parmigiana.### Cost Calculations at 30 Plates- **AVC (Average Variable Cost)**: $2.20- **ATC (Average Total Cost)**: $2.40- **MC (Marginal Cost)**: $5.00To calculate AFC (Average Fixed Cost), VC (Variable Cost), TC (Total Cost), and FC (Fixed Cost):- **AFC (Average Fixed Cost)**: ATC - AVC = $2.40 - $2.20 = $0.20- **VC (Variable Cost)**: AVC * Quantity = $2.20 * 30- **TC (Total Cost)**: ATC * Quantity = $2.40 * 30- **FC (Fixed Cost)**: (ATC - AVC) * Quantity = $0.20 * 30This detailed

The following formulas would be required to solve the question: The value of MC, AVC, and ATC could…

QUESTION 2 The following graph shows the average variable cost (AVC), average total cost (ATC) and marginal cost (MC) curves of a local restaurant whose signature dish is chicken parmigiana. Use the information from the graph to find the values of the following costs at an output level of 30 plates of chicken parmigiana: MC, AVC, ATC, AFC, VC, TC, and FC. Costs (in $) $5 $2.40 $2.20 0 Figura 12 30 MC ATC AVC Quantity (number of plates of chicken parmigiana)

QUESTION 2 The following graph shows the average variable cost (AVC), average total cost (ATC) and marginal cost (MC) curves of a local restaurant whose signature dish is chicken parmigiana. Use the information from the graph to find the values of the following costs at an output level of 30 plates of chicken parmigiana: MC, AVC, ATC, AFC, VC, TC, and FC. Costs (in $) $5 $2.40 $2.20 0 Figura 12 30 MC ATC AVC Quantity (number of plates of chicken parmigiana)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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