Suppose you are the cost accountant of a major producer of funnel cakes. a) Fill in the table so that you can inform the company's CEO about the cost structure of the firm. Exercise 2 Output Total q Fixed Cost TFC 50 50 50 50 50 50 50 50 50 50 50 50 0 1 2 3 4 5 6 7 8 9 10 11 Total Variable Cost TVC(q) 0 10 17.5 22.5 25 30 37.5 47.5 60 75 100 150 Short run Average Total Fixed Cost Cost STC(q) AFC(q) Average Short run Variable Average Cost Cost AVC(q) SAC(q) Short run Marginal Cost SMC(q) b) On a graph, plot STC(q), TVC(q) and TFC. c) On a separate graph plot SAC(q), AFC(q), AVC (q) and SMC(q) curves. Briefly discuss the relationships between SMC(q) with SAC(q) and AVC(q).
Suppose you are the cost accountant of a major producer of funnel cakes. a) Fill in the table so that you can inform the company's CEO about the cost structure of the firm. Exercise 2 Output Total q Fixed Cost TFC 50 50 50 50 50 50 50 50 50 50 50 50 0 1 2 3 4 5 6 7 8 9 10 11 Total Variable Cost TVC(q) 0 10 17.5 22.5 25 30 37.5 47.5 60 75 100 150 Short run Average Total Fixed Cost Cost STC(q) AFC(q) Average Short run Variable Average Cost Cost AVC(q) SAC(q) Short run Marginal Cost SMC(q) b) On a graph, plot STC(q), TVC(q) and TFC. c) On a separate graph plot SAC(q), AFC(q), AVC (q) and SMC(q) curves. Briefly discuss the relationships between SMC(q) with SAC(q) and AVC(q).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Show full answers and steps to part a) b) & c)
![Suppose you are the cost accountant of a major producer of funnel cakes.
a) Fill in the table so that you can inform the company's CEO about the cost structure of the
firm.
Exercise 2
Output
9
0
1
2
3
4
5
6
7
8
9
10
11
Total
Fixed
Cost
TFC
50
50
50
50
50
50
50
50
50
50
50
50
Total
Variable
Cost
TVC(q)
0
10
17.5
22.5
25
30
37.5
47.5
60
75
100
150
Short run
Total
Cost
STC(q)
Average
Fixed
Average
Short run
Variable Average
Cost
Cost
Cost
AFC(q) AVC(q) SAC(q)
Short run
Marginal
Cost
SMC(q)
b) On a graph, plot STC (q), TVC(q) and TFC.
c) On a separate graph plot SAC (q), AFC(q), AVC(q) and SMC(q) curves. Briefly discuss
the relationships between SMC(q) with SAC(q) and AVC (q).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3574180-5be7-46af-9f18-c1fbb9ec682c%2F7bcffe23-675a-449b-bc8a-8af0d900591e%2Feljshpi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose you are the cost accountant of a major producer of funnel cakes.
a) Fill in the table so that you can inform the company's CEO about the cost structure of the
firm.
Exercise 2
Output
9
0
1
2
3
4
5
6
7
8
9
10
11
Total
Fixed
Cost
TFC
50
50
50
50
50
50
50
50
50
50
50
50
Total
Variable
Cost
TVC(q)
0
10
17.5
22.5
25
30
37.5
47.5
60
75
100
150
Short run
Total
Cost
STC(q)
Average
Fixed
Average
Short run
Variable Average
Cost
Cost
Cost
AFC(q) AVC(q) SAC(q)
Short run
Marginal
Cost
SMC(q)
b) On a graph, plot STC (q), TVC(q) and TFC.
c) On a separate graph plot SAC (q), AFC(q), AVC(q) and SMC(q) curves. Briefly discuss
the relationships between SMC(q) with SAC(q) and AVC (q).
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education