The schedule for total costs, fixed costs, variable costs, average total cost , average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Question

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Answer 1

Question

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

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Students have asked these similar questions

At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.

Answer 2

Question

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

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Answer 3

Question

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

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Answer 4

Question

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

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Answer 5

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

Answer 6

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

Answer 7

Chapter 11, Problem 10P

To determine

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Answer 8

Expert Solution & Answer

Answer to Problem 10P

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Using the following formulas, we calculate the values of the table.

1)Variable Cost (VC)= Total output × Average Variable Cost⇒VC=Q×AVC2)Total Cost (TC)=Variable Cost+Fixed Cost⇒TC=VC+FC3)Average Fixed Cost (AFC)=Fixed CostTotal output⇒AFC= FCQ4)Average Variable Cost (AFC)=Variable CostTotal output⇒AVC= VCQ5)Average Cost (AC)=Total CostTotal output⇒AC= TCQ6)Marginal Cost (MC)=Total CostTotal output⇒MC= ΔTC ΔQor,MCn=VCn−VC n−1 v

Total Product (Q)	Fixed Cost (FC)	Variable Cost (VC)	Total Cost (TC)	Average Fixed Cost (AFC)	Average Variable Cost (AVC)	Average Cost (AC)	Marginal Cost (MC)
1	100	30	130	100	30	130	30
2	100	50	150	50	25	75	20
3	100	60	160	33.33	20	53.33	10
4	100	64	164	25	16	41	4
5	100	90	190	20	18	38	26
6	100	126	226	16.67	21	37.67	36
7	100	168	268	14.28	24	38.28	42
8	100	218	318	12.5	27.25	39.75	50

Answer 12

Economics Concept Introduction

Total cost: TC are the total outlay in production activity.

Fixed costs: FC are the costs that once incurred remain same at all levels of output.

Variable costs: VC are the costs that vary with the level of output.

Average total cost: ATC is the total cost per unit of output.

Average fixed cost: AFC is the fixed cost per unit of output.

Average variable cost: AVC is the variable cost per unit of output.

Marginal Cost: MC is an add on to the total cost (or total variable cost) when an extra unit of output is produced.

Answer 13

Ch. 11 - Prob. 1P Ch. 11 - Prob. 2P Ch. 11 - Prob. 3P Ch. 11 - Prob. 4P Ch. 11 - Prob. 5P Ch. 11 - Prob. 6P Ch. 11 - Prob. 7P Ch. 11 - Prob. 8P Ch. 11 - Prob. 9P Ch. 11 - Prob. 10P

The schedule for total costs, fixed costs, variable costs, average total cost , average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

The schedule for total costs, fixed costs, variable costs, average total cost, average fixed cost, average variable cost and marginal cost for Attractive Magnet Co. for 2018.

Answer to Problem 10P

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions