2. The following table shows data for the simple production function. Capital costs this firm R20 per unit, and labour costs R10 per worker TC AVC ATC MC ТР TFC TVC AFC K 10 0. 10 10 15 10 30 10 4 50 10 5. 75 10 85 10 7. 90 10 92 2.1 From the information in the table, calculate total fixed costs (TFC). Total variable cost (TVC), Total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) 2.2 At what point is average total cost minimized? At what point is average variable cost minimized?

Essentials of Business Analytics (MindTap Course List)
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ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter13: Nonlinear Optimization Models
Section: Chapter Questions
Problem 2P: The Cobb-Douglas production function is a classic model from economics used to model output as a...
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2. The following table shows data for the simple production function. Capital costs this firm R20
per unit, and labour costs R10 per worker
TC
AVC
ATC
MC
ТР
TFC
TVC
AFC
K
10
0.
10
10
15
10
30
10
4
50
10
5.
75
10
85
10
7.
90
10
92
2.1 From the information in the table, calculate total fixed costs (TFC). Total variable cost (TVC),
Total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC),
and marginal cost (MC)
2.2 At what point is average total cost minimized? At what point is average variable cost
minimized?
Transcribed Image Text:2. The following table shows data for the simple production function. Capital costs this firm R20 per unit, and labour costs R10 per worker TC AVC ATC MC ТР TFC TVC AFC K 10 0. 10 10 15 10 30 10 4 50 10 5. 75 10 85 10 7. 90 10 92 2.1 From the information in the table, calculate total fixed costs (TFC). Total variable cost (TVC), Total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) 2.2 At what point is average total cost minimized? At what point is average variable cost minimized?
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