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
I already filled out the table, but I don't understand how to answer 3. a, b, and c.
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
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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- 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?arrow_forward1.7 Use the information in the graph to find the values for the following costs at an output level of 500. a. Total fixed cost b. Total variable cost c. Total cost d. Marginal cost MC $35 ATC AVC 15 10 500 Units of output Cost per unit ($)arrow_forwarda. Calculate marginal cost using the formula given in the chapter: ATotal cost/AQuantity. Quantity Variable cost ($) Total cost ($) Marginal cost ($) 0 0 100 1 60 160 2 110 210 100 3 180 280 100 4 270 370 100 5 400 500 100 b. Calculate AVariable cost/AQuantity. Quantity Variable cost ($) AVariable cost Total cost ($) ($)/ AQuantity 0 0 100 1 60 160 100 2 110 210 100 3 180 280 100 4 270 370 100 5 400 500 100arrow_forward
- Question 4 Use the following table for the (i),(ii) and (iii) questions. Quantity Total fixed cost Total variable cost 0 $800 $0 1 $800 $50 2 $800 $100 3 $800 $150 4 $800 $200 (i) What is the marginal cost of the third unit? A: $0 B: $50 C: $150 D: $250 (ii) What is the average total cost at the quantity of 4? A: $100 B: $150 C: $200 D: $250 (iii) From the information in the table above, is the marginal product diminishing? A: Yes, because the total cost is increasing as the quantity increases. B: Yes, because the total variable cost is increasing as the quantity increases. C: No, because the marginal cost is not increasing as quantity increases. D: No, because the total fixed cost is not increasing as quantity increases.arrow_forwardUse the following table to answer the questions that follow. Total Output Cost TFC TVC AFC AVC ATC MC0 $20 1 $40 2 $60 3 $90 4 $120 5 $180 6 $280 a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs b. Plot each of the cost curves. c. At what quantity of output does marginal cost equalaverage total cost and average variable cost?arrow_forwardQuestion attachedarrow_forward
- The cost information in the following table shows that as production increases Quantity produced/day Total cost Variable cost 0 $50 0 1 $75 $50 2 $110 $75 3 $155 $100 4 $210 $150 5 $270 $175 6 $345 $250 A.) variable cost increases at a uniform rate. b.) variable cost increases and then eventually falls c.) average total cost always falls d.) marginal cost eventually increasesarrow_forwardIn 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_forward
- Suppose, Home Style is a well-known furniture manufacturer in the Sultanate. To meet the increasing demand, the company increased the production of some furniture items. As a result, there was an increase in the cost of raw materials such as plywood, timber and plastic etc. What do you call the amount spent by Home Style on these resources? a. Indirect cost b. Implicit cost c. Average cost d. Variable costarrow_forwardSuppose that you and your roommate have started a Doughnut delivery service on campus. List some of your fixed costs and describe why they are fixed. List some of your variable costs and describe why they are variable.arrow_forwardRead Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average Total Costs- entitled "Marginal Costs" and solve for Marginal Costs ....then...explain the "behavior" of the costs. By that I mean why do costs decline then at some point begin to accelerate? You may wish to read next week's lesson notes; for some reason, they haven't been posted here. But if you read the chapter you should be able to explain the cost behavior. I want you to explain the behavior of ALL COSTS identified in the matrix. IN EXPLAINING THE COSTS INPUTTED BELOW, DESCRIBE "HOW" THEY PERTAIN TO YOUR BUSINESS IDEA YOU'VE BEEN DISCUSSING IN PREVIOUS HOMEWORK/DB ASSIGNMENTS. IN OTHER WORDS, "TIE-IN" THE NUMBERS TO YOUR COMPANY. Output Fixed Costs Variable Costs Total Costs Average Fixed Costs Average Variable Costs Average Total Costs lo 1 2 3 114 5 6 17 100 125 145 157 177 202 236 Module 7 Homework Table 270arrow_forward
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