Read Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average Total Costs- entitled "Marginal Costs" and solve for Marginal Costs ....then...explain the "behavior" of the costs. By that I mean why do costs decline then at some point begin to accelerate? You may wish to read next week's lesson notes; for some reason, they haven't been posted here. But if you read the chapter you should be able to explain the cost behavior. I want you to explain the behavior of ALL COSTS identified in the matrix. IN EXPLAINING THE COSTS INPUTTED BELOW, DESCRIBE "HOW" THEY PERTAIN TO YOUR BUSINESS IDEA YOU'VE BEEN DISCUSSING IN PREVIOUS HOMEWORK/DB ASSIGNMENTS. IN OTHER WORDS, "TIE-IN" THE NUMBERS TO YOUR COMPANY. Module 7 Homework Table Output Fixed Costs Variable Costs Total Costs Average Fixed Costs Average Variable Costs Average Total Costs o 1 2 3 4 5 6 7 100 125 145 157 177 202 236 270

Read Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average Total Costs- entitled "Marginal Costs" and solve for Marginal Costs ....then...explain the "behavior" of the costs. By that I mean why do costs decline then at some point begin to accelerate? You may wish to read next week's lesson notes; for some reason, they haven't been posted here. But if you read the chapter you should be able to explain the cost behavior. I want you to explain the behavior of ALL COSTS identified in the matrix. IN EXPLAINING THE COSTS INPUTTED BELOW, DESCRIBE "HOW" THEY PERTAIN TO YOUR BUSINESS IDEA YOU'VE BEEN DISCUSSING IN PREVIOUS HOMEWORK/DB ASSIGNMENTS. IN OTHER WORDS, "TIE-IN" THE NUMBERS TO YOUR COMPANY. Module 7 Homework Table Output Fixed Costs Variable Costs Total Costs Average Fixed Costs Average Variable Costs Average Total Costs o 1 2 3 4 5 6 7 100 125 145 157 177 202 236 270

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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