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Refer to the information provided in Table below to answer the questions that follow. If Sherry produces three pairs of earrings, her total fixed costs are Number of Earings TVC MC AVC TFC TC AFC ATC 100 50 2. 95 3. 46.67 300

Refer to the information provided in Table below to answer the questions that follow. If Sherry produces three pairs of earrings, her total fixed costs are Number of Earings TVC MC AVC TFC TC AFC ATC 100 50 2. 95 3. 46.67 300

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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**Transcription and Explanation for Educational Website** **Question:** Refer to the information provided in the table below to answer the questions that follow. If Sherry produces three pairs of earrings, her total fixed costs are: **Table:** | Number of Earrings | TVC | MC | AVC | TFC | TC | AFC | ATC | |--------------------|-----|-----|------|-----|-----|-----|-----| | 0 | | | | 100 | | | | | 1 | 50 | | 50 | | 150 | 100 | 150 | | 2 | | | 46.67| | | | | | 3 | | | | | 270 | | 90 | | 4 | | | | | 300 | | | | 5 | | | | | | | | **Options:** - $33.30 - $100 - $46.67 - $50 **Explanation of Table:** - **TVC (Total Variable Cost):** Cost that varies with the level of output. - **MC (Marginal Cost):** Cost to produce one additional unit. - **AVC (Average Variable Cost):** TVC divided by the number of units produced. - **TFC (Total Fixed Cost):** Cost that remains constant regardless of the level of output. - **TC (Total Cost):** Sum of TVC and TFC. - **AFC (Average Fixed Cost):** TFC divided by the number of units produced. - **ATC (Average Total Cost):** TC divided by the number of units produced. **Answer:** For the question, "If Sherry produces three pairs of earrings, her total fixed costs are," we're looking specifically for the TFC (Total Fixed Cost) value that's constant across all production levels. From the table, the TFC is shown to be 100 units. Therefore, the answer is: **$100**.
Transcribed Image Text:**Transcription and Explanation for Educational Website** **Question:** Refer to the information provided in the table below to answer the questions that follow. If Sherry produces three pairs of earrings, her total fixed costs are: **Table:** | Number of Earrings | TVC | MC | AVC | TFC | TC | AFC | ATC | |--------------------|-----|-----|------|-----|-----|-----|-----| | 0 | | | | 100 | | | | | 1 | 50 | | 50 | | 150 | 100 | 150 | | 2 | | | 46.67| | | | | | 3 | | | | | 270 | | 90 | | 4 | | | | | 300 | | | | 5 | | | | | | | | **Options:** - $33.30 - $100 - $46.67 - $50 **Explanation of Table:** - **TVC (Total Variable Cost):** Cost that varies with the level of output. - **MC (Marginal Cost):** Cost to produce one additional unit. - **AVC (Average Variable Cost):** TVC divided by the number of units produced. - **TFC (Total Fixed Cost):** Cost that remains constant regardless of the level of output. - **TC (Total Cost):** Sum of TVC and TFC. - **AFC (Average Fixed Cost):** TFC divided by the number of units produced. - **ATC (Average Total Cost):** TC divided by the number of units produced. **Answer:** For the question, "If Sherry produces three pairs of earrings, her total fixed costs are," we're looking specifically for the TFC (Total Fixed Cost) value that's constant across all production levels. From the table, the TFC is shown to be 100 units. Therefore, the answer is: **$100**.
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