Figure 73 shows the short-run cost curves for a producer. In the figure below, lines H, J. and K represent Figure 7.3 Select one: marginal product, average product, and total product, respectively average fixed cost, average total cost, and average variahle cost, respectively marginal cost, average total cost, and average variable cost, respectively. average total cost, marginal cost, and average variable cost, respectively marginal cost, average product, average total cost, respectively

Use the cost table below to find the following marginal costs. Output quantity Total variable Total fixed Total cost cost cost 20 80 60 140 40 140 60 200 60 210 60 270 80 300 60 360 100 420 60 480 120 600 60 660 140 840 60 900 What is the marginal cost when output is 20? $ What is the marginal cost when output is 80? $ What is the marginal cost when output is 120? $ |

long-run cost relationships

Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. (Hint: Determine the total fixed cost first.) Instructions: Enter your answers rounded to two decimal places. Total Average Fixed Cost Average Total Cost Marginal Cost Output Variable Total Cost Cost 1 $10.00 $9.76 $9.76 $19.76 2 $19.06 $14.53 $9.30 $29.06 3 $3.33 $12.63 $37.90 4 $2.50 $36.31 $11.58 $8.41 $46.31 $2.00 $44.30 $10.86 LO

The following is a cost schedule for A & E Manufacturing Company Ltd for product X.   Quantity (Q) Fixed Cost Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0     100         1   30           2           25   3   60           4 100         18     Required: Calculate the missing costs and complete the schedule.  On one diagram, plot and label the Marginal Cost curve, the Average Fixed Cost curve, Average Variable Cost Curve and the Average Total Cost curve.                       Explain the relationship which exists between the Marginal Cost Curve and the Average Total Cost Curve.  What accounts for the ‘U’ shape of the Average Total Cost Curve?

The average fixed cost curve will never intersect with either the horizontal or vertical axis. graph. There must be proper positioning of the Average Total Cost curve and Average Variable Cost curve. graph. The Average Total Cost curve and Average Variable Cost curve must not touch (in between is average fixed costs – which can never be zero). graph.

Let F be the fixed cost of production, let VC be the variable cost of production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the average variable cost, and AC, the average cost. Complete the following cost table. (Enter numeric responses rounded to two decimal places.) Output (q) 1 2 3 4 31 5 6 7 8 9 06 10 F $200 200 200 200 200 200 200 200 200 VC $48 84 108 120 144 344 380 228 428 288 488 60 560 с MC $248 $48 AFC AVC AC $200.00 $48.00 $248.00 284 36 100.00 42.00 142.00 308 24 66.67 36.00 12 50.00 30.00 80.00 24 40.00 68.80 36 33.33 30.00 63.33 28.57 32.57 61.14 36.00 61.00 40.00 62.22 44.40 360 444 72 84 22.22 20.00

Complete the table by filling in the average fixed cost, average variable cost, and average total cost.   Instructions: Round your answers to 2 decimal places.   Vintage Model Car Production Costs Output Total Fixed Cost (dollars) Total Variable Cost (dollars) Total Cost (dollars) Average Fixed Cost (dollars) Average Variable Cost (dollars) Average Total Cost (dollars) 0 $2,000 $0 $2,000 — — — 100 2,000 800 2,800       200 2,000 1,300 3,300       500 2,000 4,350 6,350

Explain the effects of an increase in fixed costs on the optimal levels of production. Draw shifted total cost, average cost, and marginal cost curves to illustrate your answer.