Suppose the imaginary company of Roobek is a small, Reno-based American apparel manufacturer specializing in athleisure. The following table presents the brand’s total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Variable Cost Average Total Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars per pair) (Dollars per pair) 0 60 — — 1 160 2 220 3 270
Suppose the imaginary company of Roobek is a small, Reno-based American apparel manufacturer specializing in athleisure. The following table presents the brand’s total cost of production at several different quantities.
Fill in the remaining cells of the following table.
|
Quantity |
Total Cost |
Marginal Cost |
Fixed Cost |
Variable Cost |
|
|
|
|
(Pairs) |
(Dollars) |
(Dollars) |
(Dollars) |
(Dollars) |
(Dollars per pair) |
(Dollars per pair) |
|
|
0 |
60 |
|
— |
— |
|||
|
1 |
160 |
||||||
|
2 |
220 |
||||||
|
3 |
270 |
||||||
|
4 |
340 |
||||||
|
5 |
450 |
||||||
|
6 |
630 |
||||||
|
|
On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $160, so you should start your ATC curve by placing a green point at (1, 160). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $100, so you should start your M\ curve by placing an orange square at (0.5, 100).)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
