The accompanying table shows a car manufacturer’s total cost of producing cars. Quantity of cars TC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 5 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000 What is this manufacturer’s fixed cost? For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? For each level of output, calculate this manufacturer’s marginal cost (MC). On one diagram, draw the manufacturer’s AVC, ATC, and MC curve
The accompanying table shows a car manufacturer’s total cost of producing cars. Quantity of cars TC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 5 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000 What is this manufacturer’s fixed cost? For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? For each level of output, calculate this manufacturer’s marginal cost (MC). On one diagram, draw the manufacturer’s AVC, ATC, and MC curve
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The accompanying table shows a car
Quantity of cars | TC |
---|---|
0 | $500,000 |
1 | 540,000 |
2 | 560,000 |
3 | 570,000 |
4 | 590,000 |
5 | 620,000 |
6 | 660,000 |
7 | 720,000 |
8 | 800,000 |
9 | 920,000 |
10 | 1,100,000 |
- What is this manufacturer’s fixed cost?
- For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the
average variable cost (AVC),average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? - For each level of output, calculate this manufacturer’s marginal cost (MC).
- On one diagram, draw the manufacturer’s AVC, ATC, and MC
curves.
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