Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 11, Problem 18QE
(a)
To determine
Determine the average fixed cost (AFC), variable cost (VC),
(b)
To determine
Graphically illustrate the AFC,
(c)
To determine
Explain the shape of the AFC, AVC, ATC, and MC curves.
(d)
To determine
Identify what law is not operative for this firm.
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Students have asked these similar questions
Ball Bearings Inc. faces costs of production as follows:Quantity Total Fixed cost Total Variable Cost0 200 01 200 502 200 703 200 904 200 1405 200 2006 200 360a. Calculate the company’s average fixed costs, average variable costs, average total costs, andmarginal costs. a. The price of a case of ball bearings is $50. Seeing that she can’t make a profit, the chiefexecutive officer (CEO) decides to shut down operations. What are the firm’s profits/losses?Was this a wise decision? Explain. b. Vaguely remembering his introductory economics course, the chief financial officer tells the CEOit is better to produce one case of ball bearings because marginal revenue equals marginal costat that quantity. What are the firm’s profits/losses at that level of production? Was this the bestdecision? Explain.
The following table shows data for quantity (Q), variable cost (VC), and fixed cost
(FC) for a ski company.
a) Fill the table for total cost (TC), average variable cost (AVC), average total cost
(ATC), and marginal cost (MC). Make sure to show your work for at least one
line.
Q
VC
FC
TC
ATC
AVC
MC
30
1
10
30
25
30
3
45
30
4
70
30
100
30
6
135
30
b) Now suppose the firm decides to produce a quantity of 5 units (Q=5), and it
sells for a price of $25 each. Answer the following:
1. Calculate the company's profits or losses
2. How can you tell at a glance whether the company is making or losing money
at this price by looking at average cost?
3. At the given quantity and price, is the marginal unit produced adding or
subtracting to profits? Should the fırm produce at this level of output?
i need typing clear urjent no chatgpt i will give 5 upvotes.
Chapter 11 Solutions
Microeconomics
Ch. 11.1 - Prob. 1QCh. 11.1 - Prob. 2QCh. 11.1 - Prob. 3QCh. 11.1 - Prob. 4QCh. 11.1 - Prob. 5QCh. 11.1 - Prob. 6QCh. 11.1 - Prob. 7QCh. 11.1 - Prob. 8QCh. 11.1 - Prob. 9QCh. 11.1 - Prob. 10Q
Ch. 11 - Prob. 1QECh. 11 - Prob. 2QECh. 11 - Prob. 3QECh. 11 - Prob. 4QECh. 11 - Prob. 5QECh. 11 - Prob. 6QECh. 11 - Prob. 7QECh. 11 - Prob. 8QECh. 11 - Prob. 9QECh. 11 - Prob. 10QECh. 11 - Prob. 11QECh. 11 - Prob. 12QECh. 11 - Prob. 13QECh. 11 - Prob. 14QECh. 11 - Prob. 15QECh. 11 - Prob. 16QECh. 11 - Prob. 17QECh. 11 - Prob. 18QECh. 11 - Prob. 19QECh. 11 - Prob. 1QAPCh. 11 - Prob. 2QAPCh. 11 - Prob. 3QAPCh. 11 - Prob. 4QAPCh. 11 - Prob. 5QAPCh. 11 - Prob. 1IPCh. 11 - Prob. 2IPCh. 11 - Prob. 3IPCh. 11 - Prob. 4IPCh. 11 - Prob. 5IP
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- help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forwardThree college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the stu- dent recreation center, which pay $6,000 per year. A fully equipped facility can be leased at a cost of $8,000 per year. Additional costs are $1,000 a year a. What are fixed costs?b. What are variable costs? c. What is the marginal cost?arrow_forwardA firm's output, variable costs, and total costs are given in the table below. Instructions: Round your answers to the nearest dollar. a. Calculate marginal cost using the formula given in the chapter: A total cost / A quantity. Variable cost ($) Total cost ($) Marginal cost ($) 0 100 50 150 80 180 220 280 360 Quantity 0 1 2 3 4 5 120 180 260 b. Calculate A variable cost / A quantity. Quantity 0 1 2 3 4 5 Variable cost ($) 0 50 80 120 180 260 Total cost ($) 100 150 180 220 280 360 A variable cost / A quantity ($)arrow_forward
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