Draw the short run total cost curve (show the total cost, fixed cost, variable cost).Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph. The table below shows the short run cost for producing bicycles.Complete all missing values in table below:Total Average Average Average Marginalfixed variableLabor OutputFixedVariablecostcostcosttotalcostcostcostcost$6011$6070$6$60$1403.11$60$210415$60280$513$60$35012$60$4201. Draw the short run total cost curve (show the total cost, fixed cost, variable cost).2. Where the marginal cost and average total cost intercept? Explain the relationshipbetween the marginal cost and the average total cost with the help of graph.2.

Formulas to be used:TC = VC+FCATC = TC/QAVC = TVC/QAFC = TFC/OMC = TCn - TCn-1

Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph.

Draw the short run total cost curve (show the total cost, fixed cost, variable cost). Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph.

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 3CQQ

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Question

Draw the short run total cost curve (show the total cost, fixed cost, variable cost).
Where the marginal cost and average total cost intercept? Explain the relationship between the marginal cost and the average total cost with the help of graph.

The table below shows the short run cost for producing bicycles.
Complete all missing values in table below:
Total Average Average Average Marginal
fixed variable
Labor Output
Fixed
Variable
cost
cost
cost
total
cost
cost
cost
cost
$60
1
1
$60
70$
6
$60
$140
3.
11
$60
$210
4
15
$60
280$
5
13
$60
$350
12
$60
$420
1. Draw the short run total cost curve (show the total cost, fixed cost, variable cost).
2. Where the marginal cost and average total cost intercept? Explain the relationship
between the marginal cost and the average total cost with the help of graph.
2.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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