Answered: A firm operates in the short run with…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...

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Question

A firm operates in the short run with total fixed costs of $8750 and total variable costs related to the quantity of output it produces as below. Answer the 2 questions below with this information:

1. Caculate average variable cost when output is 9 units.

2. What is the margina clst of the 11th unit of output.

Q (Output)
0
1
2
3
4
5
6
7
8
9
10
11
TVC (Total
Variable
Cost
$0.00
$7,500
$12,500
$16,000
$20,000
$24,500
$29,500
$36,000
$43,000
B
$62,200
$73,550
$57,150
1a. Calculate average variable cost when output is 9 units.
1b. What is the marginal cost of the _11 th unit of output.

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