### Cost Analysis Exercise**Question 1:**What is the average total cost when producing three units?- **Average Total Cost: $** [Input Box]**Question 2:**What is the average variable cost when producing four units?- **Average Variable Cost: $** [Input Box]---In this exercise, you are asked to calculate two different types of costs associated with production:1. **Average Total Cost**: This is calculated by taking the total cost of production and dividing it by the number of units produced. It helps in understanding how costs change with production levels.2. **Average Variable Cost**: This is determined by dividing the total variable costs by the number of units produced. It varies with the level of output.Please enter your answers in the respective input boxes for each question. ### Cost Functions: Calculating Missed Cost Data**Instructions:**Use your knowledge of cost functions to calculate the missing cost data in the provided table. Ensure your answers are rounded to two decimal places.#### Cost Data Table| Quantity | Marginal Cost | Fixed Cost | Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost ||----------|---------------|------------|---------------|------------|--------------------|-----------------------|--------------------|| 0 | --- | | | | --- | --- | --- || 1 | | | | | | $45.00 | || 2 | | | $74.00 | | | | || 3 | $95.00 | | | | | | || 4 | $40.00 | | $400.00 | | | | |**Questions:**1. **What is the total cost when producing zero units?** - **Total cost:** $ ______2. **What is the marginal cost for the first unit?** - **Marginal cost:** $ ______### Explanation:This table is essential for analyzing the cost structure of a business operation as production scales from zero to four units. Key components include Fixed Costs, Variable Costs, and the various averages that provide insight into cost behavior per unit. The table helps in understanding how costs evolve with different production quantities, crucial for pricing, budgeting, and financial planning decisions.

What is the total cost when producing zero units.

Answered: What is the average total cost when…

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Economics

What is the average total cost when producing three units? average total cost: $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Cost Functions: Calculating Missed Cost Data

**Instructions:**

Use your knowledge of cost functions to calculate the missing cost data in the provided table. Ensure your answers are rounded to two decimal places.

#### Cost Data Table

| Quantity | Marginal Cost | Fixed Cost | Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost |
|----------|---------------|------------|---------------|------------|--------------------|-----------------------|--------------------|
| 0 | --- | | | | --- | --- | --- |
| 1 | | | | | | $45.00 | |
| 2 | | | $74.00 | | | | |
| 3 | $95.00 | | | | | | |
| 4 | $40.00 | | $400.00 | | | | |

**Questions:**

1. **What is the total cost when producing zero units?**

- **Total cost:** $ ______

2. **What is the marginal cost for the first unit?**

- **Marginal cost:** $ ______

### Explanation:

This table is essential for analyzing the cost structure of a business operation as production scales from zero to four units. Key components include Fixed Costs, Variable Costs, and the various averages that provide insight into cost behavior per unit. The table helps in understanding how costs evolve with different production quantities, crucial for pricing, budgeting, and financial planning decisions.

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