MICROECONOMICS
5th Edition
ISBN: 9781319395018
Author: KRUGMAN
Publisher: MAC HIGHER
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Question
Chapter 11, Problem 16P
To determine
- Fixed Cost
- Marginal Cost
- Variable Cost
Average Variable Cost , Average Total Cost , Average Fixed Cost, Minimum Cost Output
To Draw:
- AVC, ATC, and MC
curves
Concept Introduction:
- Fixed cost (FC) is the cost that remains constant for every level of output
- Variable cost (VC) is the cost which varies with the increase or decrease in output
- Total Cost (TC) is the sum of fixed and variable cost
- Average Variable Cost (AVC) means the variable cost divided by units produced
- Average Fixed Cost (AFC) means the fixed cost divided by units produced
- Average Total Cost (ATC) means the total cost divided by units produced
- Marginal Cost (MC) is the cost incurred in producing every additional unit
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