Question
Asked Mar 5, 2020
2 views
TC = TVC + TFC
TVC = AVC * q
TFC = AFC * q
TC
ATC = AFC + AVC
TFC
AFC =
TVC
AVC =
ATC
MC =
Да
help_outline

Image Transcriptionclose

TC = TVC + TFC TVC = AVC * q TFC = AFC * q TC ATC = AFC + AVC TFC AFC = TVC AVC = ATC MC = Да

fullscreen
4. If TFC=1000 and q=100, what is AFC?
help_outline

Image Transcriptionclose

4. If TFC=1000 and q=100, what is AFC?

fullscreen
check_circle

Expert Answer

Step 1

The cost of production is the summation of costs incurred in the process of producing the commodity. It includes the cost of raw materials used in the production, labor used, technology used and capital used etc. The summation of all the costs incurred during the process of production is known as the costs of production.

Step 2

There are mainly two different types of costs such as the fixed cost and the variable cost. The fixed cost is the cost that remains the same at all the levels of output. Even when the quantity of output produced is zero, the fixed cost would be the same. This is why the fixed cost is said to be free from quantity. The variable cost is the cost of production that changes as the quantity increases. When the quantity is zero, the variable cost will be also zero. The variable cost is thus related to the quantity of output in the economy.

Step 3

It is given that the total fixed cost of production is $1,000 and the quantity produced is 100. The average fixed cost of production can be calculated by dividing the total fixed cost with the quantity produced as follows:

Economics homework question answer, step 3, image 1

...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Use this picture to answer the questions that follow 9.50 Supply 8.50 7.50 Demant 50 60 70 80 90 100...

A: The tax is a unilateral payment made by the people towards the government for various purposes such ...

question_answer

Q: For each of the following pairs of goods, which good would you expect to have more elastic demand? ...

A: Elasticity shows the responsiveness of quantity demanded due to the change in the price of a commodi...

question_answer

Q: Which of the following would reduce the supply of baseball hats? An increase in the demand for baseb...

A: Supply of baseball hates depends on the price of raw material, and other factors that are used in pr...

question_answer

Q: Consider a two country, two goods, single factor model with Öxed labor requirements. If a country A ...

A: The market is a place where the buyers and sellers in the economy interact with each other and the e...

question_answer

Q: Suppose that you own an apple orchard and the following chart represents the quantity of apples that...

A: Fixed cost is the cost that is same for all levels of production and marginal cost is the cost that ...

question_answer

Q: Question: Suppose that the supply schedule of Maine lobsters is as follows: Price of lobster (per po...

A: Equilibrium Point: The equilibrium point is the point that is determined by the intersection of dema...

question_answer

Q: The market for paper in a particular region in the United States is characterized by the following d...

A: Click to see the answer

question_answer

Q: Suppose the own price elasticity of demand for good X is -2, its income elasticity is 3, its adverti...

A: Given: Price elasticity of demand for good X is -2, Income elasticity is 3, Advertising elasticity i...

question_answer

Q: The Bureau of Labor Statistics announced that in January 2013, of all adult Americans, 143,322,000 w...

A: a. Formula for the adult population = employed + unemployed + people not in the labor force         ...