1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000. a. What are the variable costs of producing 100 units? (1) b. Write out the total cost equation assuming variable costs are linear. That may sound hard, but it is just the equation for total costs as a function of output. (1) What is the marginal cost of the 50th unit of output? (1) c.

1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000. a. What are the variable costs of producing 100 units? (1) b. Write out the total cost equation assuming variable costs are linear. That may sound hard, but it is just the equation for total costs as a function of output. (1) What is the marginal cost of the 50th unit of output? (1) c.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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Similar questions

What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.