Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) COSTS (Dollars per pair) 8 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $160, so you should start your ATC curve by placing a green point at (1, 160). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $100, so you should start your MC curve by placing an orange square at (0.5, 100).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 175 150 125 8 e 0 1 2 3 4 5 6 # 60 160 220 270 340 450 630 QUANTITY (Pairs of boots) ATC AVC --0- Average Variable Cost Average Total Cost (Dollars per pair) (Dollars per pair) MC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:# Various Measures of Cost ## Overview Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table presents the brand’s total cost of production at several different quantities. ### Cost Table Fill in the remaining cells of the following table: | Quantity (Pairs) | Total Cost (Dollars) | Marginal Cost (Dollars) | Fixed Cost (Dollars) | Variable Cost (Dollars) | Average Variable Cost (Dollars per pair) | Average Total Cost (Dollars per pair) | |------------------|----------------------|-------------------------|----------------------|-------------------------|-------------------------------------------|-------------------------------------| | 0 | 60 | | | | | | | 1 | 160 | | | | | | | 2 | 220 | | | | | | | 3 | 270 | | | | | | | 4 | 340 | | | | | | | 5 | 450 | | | | | | | 6 | 630 | | | | | | ### Graph Instructions On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). #### Plotting Tips - **ATC and AVC**: Plot the points on the integer. For example, the ATC of producing one pair of boots is $160, so place a green point at (1, 160). - **MC**: Plot the points between the integers. For example, the MC of increasing production from zero to one pair of boots is $100, so place an orange square at (0.5, 100). ### Graph The graph provided has the y-axis labeled as "COSTS (Dollars per pair)" and the x-axis labeled as "QUANTITY (Pairs of boots)." The graph shows three cost curves: - **ATC**: Displayed with green triangles. - **AVC**: Displayed with purple diamonds.

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