6. Consider in this question that the market for truffles operates in a free market economy.The following information is available for truffle producers. Costs are all in AED.QuantityVariable CostsFixed CostsTotal Costs(Pounds Ik)21,0001080,00020210,00030310,000a) What is the fixed cost for truffle producers? What is the variable cost for truffleproducers when Quantity is 0? What is the average total cost when quantity is 20 lh?What is total cost when quantity is 10 lk? What is average variable cost whenquantity is 30 lk? What is average fixed cost when quantity is 10 lk?b) Explain the relationship between quantity and average fixed cost.c) What is the marginal cost when quantity is 20 lþ? If truffle producers sell theirproducts to UAE dealers for AED 11,500 per Pound, what is total profit (or loss)when quantity is 20 lb.?

Q VC FC TC 0 21,000 10 80,000 20 2,10,000 30 3,10,000

6. Consider in this question that the market for truffles operates in a free market economy. The following information is available for truffle producers. Costs are all in AED. Quantity Variable Costs Fixed Costs Total Costs (Pounds Įk) 21,000 10 80,000 20 210,000 30 310,000 a) What is the fixed cost for truffle producers? What is the variable cost for truffle producers when Quantity is 0? What is the average total cost when quantity is 20 lb? What is total cost when quantity is 10 lk? What is average variable cost when quantity is 30 lk ? What is average fixed cost when quantity is 10 lk? b) Explain the relationship between quantity and average fixed cost.

6. Consider in this question that the market for truffles operates in a free market economy. The following information is available for truffle producers. Costs are all in AED. Quantity Variable Costs Fixed Costs Total Costs (Pounds Įk) 21,000 10 80,000 20 210,000 30 310,000 a) What is the fixed cost for truffle producers? What is the variable cost for truffle producers when Quantity is 0? What is the average total cost when quantity is 20 lb? What is total cost when quantity is 10 lk? What is average variable cost when quantity is 30 lk ? What is average fixed cost when quantity is 10 lk? b) Explain the relationship between quantity and average fixed cost.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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