9.a. Fill in the blanks in the tableUnits of Fixed Variable Total MarginalCostAverageAverageVariable Cost Total CostAverageOutput CostCostFixed CostCost1001002510045100571007710010210013610017010022610029810100390b. Draw a graph that shows marginal cost, avenge variable cost, and average total cost,with cost on the vertical axis and quantity oo the borizontal axis.NO

Total cost is the sum of fixed and variable costs. Marginal cost is the addition to the total cost…

Units of Fixed Variable Total Marginal Average Output Cost Average Variable Cost Total Cost Average Cost Cost Cost Fixed Cost 100 100 25 100 45 100 57 100 77 100 102 100 136 100 170 000 226 100 298 10 100 390 b. Draw a graph that shows marginal cost, average variable cost, and average total cost, with cost on the vertical axis and quantity K the borizontal axis.

Units of Fixed Variable Total Marginal Average Output Cost Average Variable Cost Total Cost Average Cost Cost Cost Fixed Cost 100 100 25 100 45 100 57 100 77 100 102 100 136 100 170 000 226 100 298 10 100 390 b. Draw a graph that shows marginal cost, average variable cost, and average total cost, with cost on the vertical axis and quantity K the borizontal axis.

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 4CQQ

See similar textbooks

Similar questions

Would you consider an interest payment on a loan to a film an explicit or implicit 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?
What are explicit and implicit costs?
A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
a. Calculate marginal cost using the formula given in the chapter: ATotal cost/AQuantity. Quantity Variable cost ($) Total cost ($) Marginal cost ($) 0 0 100 1 60 160 2 110 210 100 3 180 280 100 4 270 370 100 5 400 500 100 b. Calculate AVariable cost/AQuantity. Quantity Variable cost ($) AVariable cost Total cost ($) ($)/ AQuantity 0 0 100 1 60 160 100 2 110 210 100 3 180 280 100 4 270 370 100 5 400 500 100
Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total cost, and marginal cost for eachquantity.b. Graph all three curves. What is the relationship between the marginal-cost curveand the average-total-cost curve? Between the marginal-cost curve and the averagevariable-cost curve? Explain.
When the first automobiles were built in 1901, they were made by skilled workers using hand tools. Later, in 1913, Henry Ford introduced the moving assembly line, which lowered costs and speeded production. Over the years, the production line has become ever more mechanized, and today robots replace people in many tasks. Search The graph below shows the demand curve for cars in 1901. Suppose the least-possible cost of producing a car is $250 and that the efficient scale is 0.5 cars a day. D Draw the average total cost curve in 1901. Label it ATC₁ 500- 400- Price (dollars per car) 300- Q SON The graph below shows the demand curve for cars in 2020. Suppose the least possible cost of producing a car is $10,000 and that the efficient scale is 200,000 cars a day Draw the average total cost curve in 2020 Label it ATC₂ Price (dollars per car) 50,000 40,000 30,000+ Next Q
Use the following table to answer the questions that follow. Total Output Cost TFC TVC AFC AVC ATC MC0 $20 1 $40 2 $60 3 $90 4 $120 5 $180 6 $280 a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs b. Plot each of the cost curves. c. At what quantity of output does marginal cost equalaverage total cost and average variable cost?
8. Why is the Minimum Average Total Cost and Efficient Scale important?
6 5 nts eBook Print References Mc Graw Hill Output 0 1 2 3 4 5 6 7 8 9 $ Total Cost $2,500 3,410 4,040 4,480 4,900 5,220 5,540 6,310 7,320 9,710 units variabl Cost $ 0 b. What is the value of total fixed cost? units 910 1540 1980 2400 2720 3040 3810 4820 7210 Marginal Cost 1 c. What is the most productive level of output? $ 910 630 440 420 320 320 770 1010 2390 d. At what output is economic capacity? Output: e. If TFC doubled, what is the marginal cost of the 7th unit? Marginal cost: $ Average Total Cost 1 $ 3410 2020 1493.33 H a 1225 1044 923.33 901.42 915 1078.89 a Average Variable Cost D $ 1 625 500 416.67 35713 312.5 27778