4. Various measures of costDouglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company's total cost of production at variousproduction quantities.Fill in the remaining cells of the following table.QuantityTotal CostMarginal CostFixed CostVariable CostAverage Variable CostAverage Total Cost(Pairs)(Dollars)(Dollars)(Dollars)(Dollars)(Dollars per pair)(Dollars per pair)601155222032554300350450On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost(AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: ForATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $155, so you should start your ATC curve byplacing a green point at (1, 155). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair ofboots is $95, so you should start your MC curve by placing an orange square at (0.5, 95).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.200175ATC150125AVC100MC7550251234QUANTITY (Pairs of boots)COSTS (Dollars per pair)

Answered: Image /qna-images/answer/85c7a47c-6e84-4112-9c77-45312ced9586.jpg

Fill in the remaining cells of the following table. Marginal Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) 60 1 155 2 220 3 255 4 300 5 350 6 450

Fill in the remaining cells of the following table. Marginal Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) 60 1 155 2 220 3 255 4 300 5 350 6 450

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 3PA

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Question

4. Various measures of cost
Douglas Fur is a small manufacturer of fake-fur boots in San Diego. The following table shows the company's total cost of production at various
production quantities.
Fill in the remaining cells of the following table.
Quantity
Total Cost
Marginal Cost
Fixed Cost
Variable Cost
Average Variable Cost
Average Total Cost
(Pairs)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars per pair)
(Dollars per pair)
60
1
155
2
220
3
255
4
300
350
450
On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost
(AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For
ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $155, so you should start your ATC curve by
placing a green point at (1, 155). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of
boots is $95, so you should start your MC curve by placing an orange square at (0.5, 95).)

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
200
175
ATC
150
125
AVC
100
MC
75
50
25
1
2
3
4
QUANTITY (Pairs of boots)
COSTS (Dollars per pair)

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