The objective of this activity is to test students understanding of the various components of the theory of costs. Fill in the cost table using the clues given below. Output TC MC ATC AFC AVC TVC TFC 2 4 6 CLUES 1. Average Fixed Cost for 6 units of output is 9. 2. Average Variable Cost for 2 units of output is 30. 3. Total Cost is increased by 28 when the 3rd unit of output is added. 4. Average Total Cost of 4 units is the same as the Average Total Cost of 3 units of output. 5. Total Cost for 5 units of output is 258. 6. Total Variable Cost is increased by 100 when the 6th unit of output is added. 7. Total Cost increases by 8 when the 2nd unit of output is added.

The objective of this activity is to test students understanding of the various components of the theory of costs. Fill in the cost table using the clues given below. Output TC MC ATC AFC AVC TVC TFC 2 4 6 CLUES 1. Average Fixed Cost for 6 units of output is 9. 2. Average Variable Cost for 2 units of output is 30. 3. Total Cost is increased by 28 when the 3rd unit of output is added. 4. Average Total Cost of 4 units is the same as the Average Total Cost of 3 units of output. 5. Total Cost for 5 units of output is 258. 6. Total Variable Cost is increased by 100 when the 6th unit of output is added. 7. Total Cost increases by 8 when the 2nd unit of output is added.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 5CQQ

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