Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 13, Problem 3QCMC
To determine
Marginal cost and average variable cost .
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The table below shows the cost of producing model vintage cars for collectors.
Instructions: Enter your answers as a whole number.
a. Complete the marginal cost column in the table.
Vintage Model Car Production Costs
Total Fixed Cost
Total Variable
Cost (dollars)
Total Cost
(dollars)
$2,000
(dollars)
$2,000
Marginal Cost
(dollars)
Output
$0
1
2,000
600
2,600
2,000
1,100
3,100
2,000
1,900
3,900
4
2,000
2,900
4,900
5.
2,000
4,150
6,150
b. What is the total cost of producing 4 vintage model cars?
2.
c. What is the marginal cost of producing the 4th vintage model car?
2.
Using the following table
Graph the average variable cost, average total cost and marginal cost curves.
Following is the table that shows the cost schedule for a firm operating in a short run.
Quantity Production
(thousands)
Total
Fixed
cost
Total
Variable
cost
Total
Cost
Marginal
Cost
Average
Fixed
Cost
Average
Variable
Cost
Average
Total
Cost
0
$400
0
$400
----
-----
-----
-----
1
$400
$240
$640
$240
$400
$240
$640
2
$400
$320
$720
$80
$200
$160
$360
3
$400
$380
$780
$60
$133.33
$126.66
$260
4
$400
$420
$820
$40
$100
$105
$205
5
$400
$450
$850
$30
$80
$90
$170
6
$400
$490
$890
$40
$66.67
$81.66
$148.33
7
$400
$580
$980
$90
$57.14
$82.85
$140…
k
The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner.
Cheeseburger Production Costs
Quantity (burgers
per hour)
0
10
20
30
40
50
60
70
80
90
100
Average Variable
Cost (dollars)
$1.00
0.70
0.70
0.78
0.88
1.07
1.34
1.74
2.23
2.81
Average Total
Cost (dollars)
$6.60
3.50
2.57
2.18
2.00
2.00
2.14
2.44
2.86
3.37
Marginal Cost
(dollars)
$1.00
0.40
0.70
1.00
1.30
2.00
3.00
4.50
6.20
8.00
a. When moving from producing a quantity of 30 cheeseburgers per hour to 40 cheeseburgers per hour, the average total cost of
production is (Click to select) and the marginal cost of cheeseburger production is (Click to select)
b. When moving from producing a quantity of 50 cheeseburgers per hour to 60 cheeseburgers per hour, the average variable cost of
production is (Click to select) and the average total cost of cheeseburger production is (Click to select) ✓
Chapter 13 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 13.1 - Prob. 1QQCh. 13.2 - Prob. 2QQCh. 13.3 - Prob. 3QQCh. 13.4 - Prob. 4QQCh. 13 - Prob. 1QRCh. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QR
Ch. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1QCMCCh. 13 - Prob. 2QCMCCh. 13 - Prob. 3QCMCCh. 13 - Prob. 4QCMCCh. 13 - Prob. 5QCMCCh. 13 - Prob. 6QCMCCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - Prob. 6PACh. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PA
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