Refer to the table below. QuantityCost(in dollars)Fixed Costs(in dollars)Total Costs(in dollars)Average Total Costs(in dollars per unit)Average Variable Costs (in dollars per unit)Marginal Costs(in dollars per unit)004040- -- -- -1154055551515235407537.517.5203604010033.320254904013032.522.53051254016533253561604020033.326.640If this information were used to create a total cost graph, the curve should Question 6 options: begin at 40 on the vertical axis and slope upward. become steeper as quantity increases. become steeper due to diminishing returns. reflect all of the above.

The objective of the question is to understand the characteristics of a total cost curve based on…

Answered: Refer to the table below.…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

Related questions

Question

Refer to the table below.

Quantity	Cost (in dollars)	Fixed Costs (in dollars)	Total Costs (in dollars)	Average Total Costs (in dollars per unit)	Average Variable Costs (in dollars per unit)	Marginal Costs (in dollars per unit)
0	0	40	40	- -	- -	- -
1	15	40	55	55	15	15
2	35	40	75	37.5	17.5	20
3	60	40	100	33.3	20	25
4	90	40	130	32.5	22.5	30
5	125	40	165	33	25	35
6	160	40	200	33.3	26.6	40

If this information were used to create a total cost graph, the curve should

Question 6 options:

	begin at 40 on the vertical axis and slope upward.
	become steeper as quantity increases.
	become steeper due to diminishing returns.
	reflect all of the above.