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 manytasks.SearchThe graph below shows the demand curve for cars in1901. Suppose the least-possible cost of producing acar is $250 and that the efficient scale is 0.5 cars aday.DDraw the average total cost curve in 1901. Label itATC₁500-400-Price (dollars per car)300-QSONThe graph below shows the demand curve forcars in 2020. Suppose the least possible costof producing a car is $10,000 and that theefficient scale is 200,000 cars a dayDraw the average total cost curve in 2020Label it ATC₂Price (dollars per car)50,00040,00030,000+NextQ When the first automobiles were built in 1901, they were made by skilled workers using hand tools.car is $250 and that the efficient scale is 0.5 cars aday.Draw the average total cost curve in 1901. Label itATC₁-500-400-300-Price (dollars per car)200-10000Quantity (cars per day)6D***A8or produchy a ca 150,000 anu C Gefficient scale is 200,000 cars a day.Draw the average total cost curve in 2020.Label it ATC₂Price (dollars per car)50.00040.00030,00020,00010,00004INAU100 200 300 400 500Quantity (thousands of cars per day)NextQ

Average total cost is total cost of producing a certain quantity of a good, divided by the quantity…

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. ***

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. ***

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company’s total cost of production at various production quantities. On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $210, so you should start your ATC curve by placing a green point at (1, 210). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $90, so you should start your MC curve by placing an orange square at (0.5, 90).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
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Solve Part C on paper
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