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Use the values in the table below to answer the following questions. TC ATC MC 2 28.44 14.22 (A)- 46.04 8 -( B)- -(C)- 135.4 40 46750 1169 -( E)- -( D)- 41 3560 Cell (D) stands for the average total cost of 41 units. Its value should be. A. 1227 B. 613.5 OC. 7247.8 D. 28.44 E. 1717.8 O F. 2208.6

Use the values in the table below to answer the following questions. TC ATC MC 2 28.44 14.22 (A)- 46.04 8 -( B)- -(C)- 135.4 40 46750 1169 -( E)- -( D)- 41 3560 Cell (D) stands for the average total cost of 41 units. Its value should be. A. 1227 B. 613.5 OC. 7247.8 D. 28.44 E. 1717.8 O F. 2208.6

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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### Table Data Explanation The table presents data regarding costs associated with different production quantities, specifically focusing on Total Cost (TC), Average Total Cost (ATC), and Marginal Cost (MC). #### Table Columns: 1. **Q (Quantity)** - Lists the number of units produced. 2. **TC (Total Cost)** - The cost incurred in the production of a certain quantity of goods. Some values are missing and represented by letters. 3. **ATC (Average Total Cost)** - This is the total cost divided by the quantity (TC/Q), representing the cost per unit. 4. **MC (Marginal Cost)** - The additional cost to produce one more unit; provided for specific quantities. #### Specific Values: - When Q = 2, TC = 28.44, ATC = 14.22. - When Q = 7, ATC = 46.04. - When Q = 8, MC = 135.4. - When Q = 40, TC = 46750, ATC = 1169. - When Q = 41, MC = 3560. ### Calculation Question - **Cell (D)** pertains to the average total cost of producing 41 units. The possible values for Cell (D) are: - A. 1227 - B. 613.5 - C. 7247.8 - D. 28.44 - E. 1717.8 - F. 2208.6 ### Explanation The correct value for Cell (D) represents the Average Total Cost (ATC) when 41 units are produced. To find this, divide the Total Cost for 41 units by 41, but the total cost at Q = 41 is not directly given, requiring conceptual understanding or additional calculation. This exercise illustrates the relationship between cost metrics: understanding how to compute average and marginal costs based on given and derived data.
Transcribed Image Text:### Table Data Explanation The table presents data regarding costs associated with different production quantities, specifically focusing on Total Cost (TC), Average Total Cost (ATC), and Marginal Cost (MC). #### Table Columns: 1. **Q (Quantity)** - Lists the number of units produced. 2. **TC (Total Cost)** - The cost incurred in the production of a certain quantity of goods. Some values are missing and represented by letters. 3. **ATC (Average Total Cost)** - This is the total cost divided by the quantity (TC/Q), representing the cost per unit. 4. **MC (Marginal Cost)** - The additional cost to produce one more unit; provided for specific quantities. #### Specific Values: - When Q = 2, TC = 28.44, ATC = 14.22. - When Q = 7, ATC = 46.04. - When Q = 8, MC = 135.4. - When Q = 40, TC = 46750, ATC = 1169. - When Q = 41, MC = 3560. ### Calculation Question - **Cell (D)** pertains to the average total cost of producing 41 units. The possible values for Cell (D) are: - A. 1227 - B. 613.5 - C. 7247.8 - D. 28.44 - E. 1717.8 - F. 2208.6 ### Explanation The correct value for Cell (D) represents the Average Total Cost (ATC) when 41 units are produced. To find this, divide the Total Cost for 41 units by 41, but the total cost at Q = 41 is not directly given, requiring conceptual understanding or additional calculation. This exercise illustrates the relationship between cost metrics: understanding how to compute average and marginal costs based on given and derived data.
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