MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Question
Chapter 11, Problem 19QE
(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 AFC, AVC, ATC, and MC curves.
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Students have asked these similar questions
K
Click on the table icon that shows the fixed costs, variable costs, and total
costs for different output levels.
Then use this data to help fill in the missing information in the table below.
Quantity
Average
Fixed Cost Variable Cost
Average
Average
Total Cost
0
1
$12
$5.00
2
$17
14.00
3
4.00
Using the same table
what is the marginal cost of the third unit produced?
A. 5.
B. 0.
OC. 15.
OD. 11.
The graph on the right shows the cost curves for a random firm competing in a
O
Price
QUESTION 4:
Cost curves for Outdoor Equipment
Figure 8.6
Number of sleeping bags
3
2
Question 20
According to figure 8.6:
Part A: Curve 1 is Outdoor Equipments'
Question 21
cost curve.
Part B: Outdoor Equipment's average variable costs are minimized at the output level where curves
intersect (put the lower number in the first blank).
and
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?
Chapter 11 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
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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- In the following table, complete the marginal cost, average variable cost, and average total cost columns. Quantity Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost (Vats of juice) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 30 1 35 15 45 3 30 60 50 80 75 105 105 135 On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Jane's Juice Bar. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 vat of juice to 2 vats of juice is $5, then you would plot a point at (1.5, 5).) Then use the purple points (diamond symbol) to plot the average-variable cost curve starting at 1 vat of juice, and use the green points (triangle symbol) to plot the average-total-cost curve also starting at 1 vat of juice. MAAAAarrow_forwardJane's Juice Bar has the following cost schedules: In the following table, complete the marginal cost, average variable cost, and average total cost columns. Variable Cost Total Cost (Dollars) (Dollars) Average Variable Cost (Dollars) Quantity (Vats of juice) 0 1 2 3 4 5 6 40 0 5 15 30 50 75 105 35 30 35 45 60 80 105 135 Marginal Cost (Dollars) ^^^^^^ On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Jane's Juice Bar. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 vat of juice to 2 vats of juice is $5, then you would plot a point at (1.5, 5).) Then use the purple points (diamond symbol) to plot the average-variable cost curve starting at 1 vat of juice, and use the green points (triangle symbol) to plot the average-total-cost curve also starting at 1 vat of juice. Average Total Cost (Dollars) Marginal Costarrow_forwardThis is a graph of our firm’s costs. Label the lines on the graph using the following labels: average fixed cost (AFC), average variable cost (AVC), average total cost (ATC) marginal cost (MC). Then label the shut down and breakeven points on the graph.arrow_forward
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