Jan's Bike ShopOutput Marginal Total variable Fixed cost|(workers) (bikes) Product cost(dollars) (dollars)Labor$0$5---1100100$52250$103350$15450$20255$25430$30The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping hasbeen spotty. At what output level is average fıxed cost at its lowest?430O 100250

Answer: Average fixed cost: it is the per-unit fixed cost of production. The average fixed cost is…

Jan's Bike Shop Labor Output Marginal Total variable Fixed cost (workers) (bikes) Product cost(dollars) (dollars) $0 $5 1 100 100 $5 2 250 $10 3 350 $15 14 50 $20 5 255 $25 6 430 $30 The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. At what output level is average fıxed cost at its lowest? O 430 100 250

Jan's Bike Shop Labor Output Marginal Total variable Fixed cost (workers) (bikes) Product cost(dollars) (dollars) $0 $5 1 100 100 $5 2 250 $10 3 350 $15 14 50 $20 5 255 $25 6 430 $30 The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. At what output level is average fıxed cost at its lowest? O 430 100 250

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 3SCQ: The WipeOut Ski Company manufactures skis for beginners. Fixed costs are 30. Fill in Table 7.16 for...

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