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Units TP VC FC TC МС of Labor

Units TP VC FC TC МС of Labor

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer the table and the questions below.
Suppose that Eli and Max have done an exhaustive study on the costs of producing cups of lemonade. They must pay $50 every day to the city for the right to sell lemonade on the sidewalk. This cost is fixed because it doesn't matter if they sell 50 cups or zero. They must also pay $25 for every employee that they hire (we will assume this is their only variable input). Complete the schedule in order to answer the questions below: Units TP VC FC TC МС АТС AVС AFC of Labor $0 1 8 $25 18 50 3 26 75 4 32 100 36 125 38 150 2. LO
Transcribed Image Text:Suppose that Eli and Max have done an exhaustive study on the costs of producing cups of lemonade. They must pay $50 every day to the city for the right to sell lemonade on the sidewalk. This cost is fixed because it doesn't matter if they sell 50 cups or zero. They must also pay $25 for every employee that they hire (we will assume this is their only variable input). Complete the schedule in order to answer the questions below: Units TP VC FC TC МС АТС AVС AFC of Labor $0 1 8 $25 18 50 3 26 75 4 32 100 36 125 38 150 2. LO
Answer the following: 1. What is the TC of 6 units 2. What is the MC of 2 units 3. What is the ATC of 4 units 4. What is the FC of 6 units 5. What is the AVC of 5 units 6. What is the AFC of 3 units LO CO
Transcribed Image Text:Answer the following: 1. What is the TC of 6 units 2. What is the MC of 2 units 3. What is the ATC of 4 units 4. What is the FC of 6 units 5. What is the AVC of 5 units 6. What is the AFC of 3 units LO CO
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