**Table Cost.EX2: Costs and Outputs for a Competitive Firm**| Output (Q) | Total Fixed Costs | Total Variable Costs ||------------|-------------------|----------------------|| 0 | $80.00 | $0.00 || 1 | $80.00 | $70.00 || 2 | $80.00 | $120.00 || 3 | $80.00 | $150.00 || 4 | $80.00 | $220.00 || 5 | $80.00 | $300.00 |Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about ______.- [ ] No answer text provided.- [ ] $76.57- [x] $76.67- [ ] No answer text provided. **Explanation:**To calculate the average total cost for 3 units, add the total fixed costs and total variable costs for 3 units, and then divide by the number of units:- Total Fixed Costs for 3 units = $80.00- Total Variable Costs for 3 units = $150.00Total Costs for 3 units = $80.00 + $150.00 = $230.00Average Total Cost = Total Costs / Quantity = $230.00 / 3 = $76.67

Average total cost is the total production cost divided by the total quantity produced.

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs $80.00 $0.00 1 $80.00 $70.00 $80.00 $120.00 $80.00 $150.00 4 $80.00 $220.00 $80.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No answer text provided. O $76.57 O $76.67 O No answer text provided.

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs $80.00 $0.00 1 $80.00 $70.00 $80.00 $120.00 $80.00 $150.00 4 $80.00 $220.00 $80.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No answer text provided. O $76.57 O $76.67 O No answer text provided.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

In U-Shaped Average Total Cost Curve above Section 11.4 exhibit 2, why does AFC continue to fall even while ATC rises at very high output?
A company that manufactures tablet computers determines that the fixed costs for producing the tablet computers are $45,000. The variable costs for producing each tablet computer are $75. The company decides to sell each tablet computer for $250. Part A: Write the cost and revenue equations if the company produces and sells a tablet computers.
Total fixed cost for this firm:
Tåble Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs 0. $50.00 $0.00 1 $50.00 $70.00 $50.00 $120.00 $50.00 $150.00 4 $50.00 $220.00 $50.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is'about O $66.67 $68.67 No answer text provided. O No answer text provided.
Answer the question on the basis of the following cost data. Output Average Fixed Cost 1 $ 50.00 2 3 4 5 6 . $0. . . 25.00 . 16.67 12.50 10.00 8.37 7 7.14 8 6.25 87.50 If the firm closed down in the short run and produced zero units of output, its total cost would be Multiple Choice Average Variable Cost $ 100.00 $50. $150. $100. 80.00 66.67 65.00 68.00 73.33 80.00
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 3. $30.00 $40.00 6. $30.00 $90.00 9. $30.00 $130.00 12 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $20.00 O $16.67 O $5.00 $15.00
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 $40.00 $40.00 4 $40.00 $90.00 9. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 $28.75
Draw the short run marginal cost curve for a firm with eventually diminishing marginal product. Then, draw an associated average variable and average total cost curve. Indicate the quantity associated with minimum average variable and average total cost. Then, indicate the price at which a firm is indifferent between shutdown and exit and the price at which a firm is indifferent between entry and exit.
37 Total Total Average Average Output Fixed Variable Total Variable Total Marginal (Q) Cost Cost Cost Cost Cost Cost E of 150 $500 $400 $900 $2.67 200 $500 $800 $1,300 $6.50 The table above shows costs for a firm. When Q = 150, Average Total Cost (ATC) is equal to: Select one: а. $3.33 b. $900 c. $6.00 d. $2.67
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 $30.00 $40.00 9. $30.00 $90.00 6. 12 $30.00 $130.00 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $5.00 O S20.00 O $16.67 O $15.00
Question 11 11.1. Revenue is the same as profit. Do you agree with this statement? Justify your answer. 11.2. Using your knowledge of cost formulas and calculations for a firm producing in the short-run, redraw the table below in your answer book and complete the table by filling in the blank spaces. [Tip: Answers should be rounded off by two decimals]. (5) Total Average Variable Cost Average Total Cost (ATC) Total Total Cost Average Fixed Fixed Cost Marginal Cost (MC) Variable Quantity Cost Cost (TFC) (TVC) (TC) (AFC) (AVC) 80 80 1 80 12 80 12 2 80 28 40 14 54 3 34 114 26.67 38 6. 4 80 39 119 20 9.75 29.75 80 42 122 16 8.4 24.4 80 128 13.33 8 21.33 7 80 56 136 11.43 8 8 80 61 141 10 7.63 17.63 9 80 68 148 7.56 16.44 10 80 157 8 7.7 15.7 9. 11.3. Suppose a firm producing coffee provides you with the following information: Price = R100 Quantity = 150 units of coffee Cost of production = R9500 11.3.1. Calculate the total revenue of the firm. 11.3.2. Is the firm currently making a profit…
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