The following Table Q1(b) shows the total product schedule for a widget. Each unitof labor costs25 and the total fixed cost of capital is 100. In the table, TFCis the total fixed cost, TVC is the total variable cost, TC is the total cost, AFC is theaverage fixed cost, AVC is the average variable cost, ATC is the average total cost,and MC is the marginal cost.Table Q1(b) : Total Product and Cost Schedule for a widget per dayQuantityTotalTFC TVC | TCAVC ATCMCof laborproduc100100XXXXXX151002512515100501503351007517545010010020056010012522565100150250(i) Calculate the AVC, ATC and MC.(ii) Plot the AVC, ATC and MC curves in a graph paper.(iii) Identify the quantity of Total Product (TP) at efficient level of production.

Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

The following Table Q1(b) shows the total product schedule for a widget. Each unit of labor costs is the total fixed cost, TVC is the total variable cost, TC is the total cost, AFC is the average fixed cost, AVC is the average variable cost, ATC is the average total cost, and MC is the marginal cost. 25 and the total fixed cost of capital is 100. In the table, TFC Table Q1(b) : Total Product and Cost Schedule for a widget per day Quantity Total of labor TFC TVC | TC AVC ATC MC produc 100 100 100 XX XX XX 25 125 5 15 35 1 50 75 100 150 3 100 175 4 50 100 100 200 60 100 125 225 6. 65 100 150 250 (i) Calculate the AVC, ATC and MC. (ii) Plot the AVC, ATC and MC curves in a graph paper. (iii) Identify the quantity of Total Product (TP) at efficient level of production. 8888

The following Table Q1(b) shows the total product schedule for a widget. Each unit of labor costs is the total fixed cost, TVC is the total variable cost, TC is the total cost, AFC is the average fixed cost, AVC is the average variable cost, ATC is the average total cost, and MC is the marginal cost. 25 and the total fixed cost of capital is 100. In the table, TFC Table Q1(b) : Total Product and Cost Schedule for a widget per day Quantity Total of labor TFC TVC | TC AVC ATC MC produc 100 100 100 XX XX XX 25 125 5 15 35 1 50 75 100 150 3 100 175 4 50 100 100 200 60 100 125 225 6. 65 100 150 250 (i) Calculate the AVC, ATC and MC. (ii) Plot the AVC, ATC and MC curves in a graph paper. (iii) Identify the quantity of Total Product (TP) at efficient level of production. 8888

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

The following Table Q1(b) shows the total product schedule for a widget. Each unit
of labor costs
25 and the total fixed cost of capital is 100. In the table, TFC
is the total fixed cost, TVC is the total variable cost, TC is the total cost, AFC is the
average fixed cost, AVC is the average variable cost, ATC is the average total cost,
and MC is the marginal cost.
Table Q1(b) : Total Product and Cost Schedule for a widget per day
Quantity
Total
TFC TVC | TC
AVC ATC
MC
of labor
produc
100
100
XX
XX
XX
1
5
100
25
125
15
100
50
150
3
35
100
75
175
4
50
100
100
200
5
60
100
125
225
65
100
150
250
(i) Calculate the AVC, ATC and MC.
(ii) Plot the AVC, ATC and MC curves in a graph paper.
(iii) Identify the quantity of Total Product (TP) at efficient level of production.

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