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4. Consider the table below which shows the total fixed costs (TFC) and variable costs (TVC) for producing Audrey Cat Food in a small factory with a fixed amount of capital. Output per year (000's of cat food) Total Fixed Cost (TFC) ($000's) Total Variable Cost (TVC) ($000's) 200 1 200 40 2 200 70 200 90 4 200 100 200 110 6. 200 130 200 160 8 200 200 a) Compute the average fixed cost (AFC), average variable cost (AVC), marainal cost (MC) and average total cost (ATC) for each level of output.

4. Consider the table below which shows the total fixed costs (TFC) and variable costs (TVC) for producing Audrey Cat Food in a small factory with a fixed amount of capital. Output per year (000's of cat food) Total Fixed Cost (TFC) ($000's) Total Variable Cost (TVC) ($000's) 200 1 200 40 2 200 70 200 90 4 200 100 200 110 6. 200 130 200 160 8 200 200 a) Compute the average fixed cost (AFC), average variable cost (AVC), marainal cost (MC) and average total cost (ATC) for each level of output.

Essentials of Economics (MindTap Course List)
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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4. Consider the table below which shows the total fixed costs (TFC) and variable costs (TVC) for producing Audrey Cat Food in a small factory with a fixed amount of capital. Total Fixed Cost Output per year (000's of cat food) Total Variable Cost (TFC) ($000's) (TVC) ($000's) 200 1 200 40 200 70 200 90 4 200 100 200 110 200 130 7 200 160 200 200 a) Compute the average fixed cost (AFC), average variable cost (AVC), marainal cost (MC) and average total cost (ATC) for each level of output. b) Explain the relationship between the between marginal cost and average variable cost.
Transcribed Image Text:4. Consider the table below which shows the total fixed costs (TFC) and variable costs (TVC) for producing Audrey Cat Food in a small factory with a fixed amount of capital. Total Fixed Cost Output per year (000's of cat food) Total Variable Cost (TFC) ($000's) (TVC) ($000's) 200 1 200 40 200 70 200 90 4 200 100 200 110 200 130 7 200 160 200 200 a) Compute the average fixed cost (AFC), average variable cost (AVC), marainal cost (MC) and average total cost (ATC) for each level of output. b) Explain the relationship between the between marginal cost and average variable cost.
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