Answer the question of the production cost as follows: 1.1 Based on Table below, calculate average variable cost, average total cost, and marginal cost for each quantity. Quantity Variable Cost Total Cost 0 $ 0 $ 30 1 10 40 2 25 55 3 45 75 4 70 100 5 100 130 6 135 165
Answer the question of the production cost as follows: 1.1 Based on Table below, calculate average variable cost, average total cost, and marginal cost for each quantity. Quantity Variable Cost Total Cost 0 $ 0 $ 30 1 10 40 2 25 55 3 45 75 4 70 100 5 100 130 6 135 165
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 8QR
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1. Answer the question of the production cost as follows:
1.1 Based on Table below, calculate average variable cost, average total
cost, and marginal cost for each quantity.
Quantity Variable Cost Total Cost
0 $ 0 $ 30
1 10 40
2 25 55
3 45 75
4 70 100
5 100 130
6 135 165
1.2 Consider the table below of long-run total costs for three different firms : *Figure 1.2 has been attached.
Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer.
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