Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 8, Problem 2.10P
To determine
The marginal revenue, marginal cost and
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Use the information in the graph to the right to find the values
for the following at an output level of 65
The marginal cost is $55 (Enter a numeric response using
an integer.)
The total cost is $2925
The variable cost is $2405
The fixed cost is $520
XX
Cost
100-
55
45.
37
0
65
Quantity of output
MC
ATC
AVC
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
This 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) and marginal cost (MC). Then label the shut down and breakeven points on the graph.
The accountants claim that we are at our profit maximizing point. You decide to investigate potential diseconomies of scale. What diseconomies of scale do you think you might find? How could these be addressed and hopefully decrease costs? (20 points)
Chapter 8 Solutions
Principles of Economics (12th Edition)
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