Use the previous production function where capital costs of this firm is $20 per unit, and labor costs $10 per worker. K 10 10 10 10 10 10 19 L 0 1 2 3 4 5 6 TP 0 5 15 30 50 75 95 TFC TVC TC AFC AVC ATC MC A. From the information in the table, calculate total fixed cost (TFC), total variable cost (TVC), total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). B. Graph your results, putting TFC, TVC, and TC on one graph and AFC, AVC, ATC, and MC on another. C. At what point is average total cost minimized? At what point is average variable cost minimized? D.
Use the previous production function where capital costs of this firm is $20 per unit, and labor costs $10 per worker. K 10 10 10 10 10 10 19 L 0 1 2 3 4 5 6 TP 0 5 15 30 50 75 95 TFC TVC TC AFC AVC ATC MC A. From the information in the table, calculate total fixed cost (TFC), total variable cost (TVC), total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC). B. Graph your results, putting TFC, TVC, and TC on one graph and AFC, AVC, ATC, and MC on another. C. At what point is average total cost minimized? At what point is average variable cost minimized? D.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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[Item-1ABCD] Instruction: (refer to the photo below) Kindly answer the question given and provide correct and complete solution. I will dislike your solution if it is incomplete and wrong answer.
Transcribed Image Text:Use the previous production function where capital costs of
this firm is $20 per unit, and labor costs $10 per worker.
K
10
10
10
10
10
10
10
10
D
10
L
0
1
2
3
4
5
6
7
8
TP TFC TVC TC AFC AVC ATC
0
5
15
30
50
75
85
90
92
MC
A.
From the information in the table, calculate total fixed cost
(TFC), total variable cost (TVC), total cost (TC), average fixed
cost (AFC), average variable cost (AVC), average total cost
(ATC), and marginal cost (MC).
B.
Graph your results, putting TFC, TVC, and TC on one graph and
AFC, AVC, ATC, and MC on another.
C.
At what point is average total cost minimized? At what point is
average variable cost minimized?
D.
Provide a hypothetical scenario to illustrate why the average
total cost and average variable cost are minimized in those
points respectively.
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