EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 8, Problem 3SP
To determine
Identify the average fixed cost,
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When marginal cost is greater than average variable cost, average variable cost iv (Click for List)
at a maximum
constant
at a minimum
falling
rising
Construct the cost schedule using the data. below for a firm operating in the short run.
Graph the average variable cost, average total cost, and marginal cost curves.
In the short run, which cost is fixed and cannot be changed? a) Average cost b) Marginal cost c) Total cost d) Variable cost
Chapter 8 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- What is the total revenue when output is 1, total cost is 35, marginal cost is 10, fixed cost is 25, average cost is 35.arrow_forwardWhat is the total cost and average cost when marginal cost is 120, fixed cost is 25, total revenue is 240, average revenue is 40, and marginal revenue is 40.arrow_forwardMoonbucks has the following cost schedules: Quantity (bottle) Variable Cost (RM) Total Cost (RM) 0 0 100 1 90 190 2 170 270 3 240 340 4 300 400 5 370 470 6 450 550 7 540 640 8 650 750 9 780 880 10 930 1030 Calculate average variable cost, average total cost, and marginal cost for each quantity.arrow_forward
- The cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $10,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Average Total Cost ($) Total Cost of Average Variable Cost ($) Average Fixed Cost ($) Output $10,000 20,000 60,000 45,000 95,000 70.000 150.000 95,000 220.000 120,000 325.000 145.000 465,000arrow_forwardA computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustratearrow_forwardThe cost structure of a manufacturer of microchips is described in the table shown below. The firm's fixed costs equal $15,000 per day. Calculate the average variable cost, average fixed cost, and average total cost at each output level. (Your answers should be rounded to the nearest cent.) Output (microchips per day) Total Cost of Output Average Variable Cost ($) Average Fixed Cost ($) Average Total Cost ($) 0 $15,000 − − − 25,000 65,000 50,000 100,000 75,000 155,000 100,000 225,000 125,000 330,000 150,000 470,000arrow_forward
- Fixed costs can be defined as costs thatarrow_forwardWhen marginal cost equals average variable cost, average variable costiv (Click for List) falling constant at a maximum at a minimum risingarrow_forwardThe Firms average total cost is $60 its average variable cost is $30 and its total fixed cost is $600 what would be the outputarrow_forward
- 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)arrow_forwardCalculate Marginal cost when total cost rises from $30 to $70 and the output rises 2 to 3 unitsarrow_forwardThe above cost curves are for a firm producing flour, which is measured in pounds. 1. What is the firm's total cost when it produces 200 pounds of flour? ______(Enter only a number) 2. What is the firm's fixed cost? _____(Enter only a number) 3. What is the firm's average variable cost when it produces 200 pounds of flour? _____(Enter only a number)arrow_forward
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