Total Average Fixed Variable fixed variable total Output Costs MC Costs Costs costs costs costs a. Complete the table 100 4 4 90 5 6 b. What is the relation between average variable cost and marginal cost? Between average total cost and marginal cost? 2 170 6 8 3 240 7 10 4 300 8 12 5 370 9 14 6 450 10 16 7 540 11 18 8 650 12 20 9 780 13 22 10 930 14 24

Total Average Fixed Variable fixed variable total Output Costs MC Costs Costs costs costs costs a. Complete the table 100 4 4 90 5 6 b. What is the relation between average variable cost and marginal cost? Between average total cost and marginal cost? 2 170 6 8 3 240 7 10 4 300 8 12 5 370 9 14 6 450 10 16 7 540 11 18 8 650 12 20 9 780 13 22 10 930 14 24

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Similar questions

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How does fixed cost affect marginal cost? Why is this relationship important?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?
How do we calculate each of the following: marginal cost, average total cost, and average variable cost?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
In choosing a production technology, how will firms react if one input becomes relatively more expensive?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
What are explicit and implicit costs?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Complete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980
andall ndall Can I ask you about some of your average variable costs? Sure! I remember from my economics classes that average variable cost (AVC) is equal to: Okay, can you tell me the average variable cost of washing 90 cars? (Round to one decimal place. Click the Production Data tab to access the car wash data.) Ty Average Variable Cost Production Data Production Data Workers 0 1 2 469 SAW Production Data Cars Mashed 0 8 23 42 64 80 90 98 96
Define economies of scale and explain why they mightarise