The average variable and average fixed costs for questions. Output 1 2 3 4 5 Average Fixed Cost 50.00 25.00 16.67 12.50 10.00 Pizza Place are listed in the table below. Use the information provided to answer the next three Pizza Place Costs Use the table above to answer the next three questions: 1. What is Pizza Place's total fixed cost? 2. If Pizza Place produces four units, what is its average total cost? 3. What is the marginal cost to Average Variable Cost 100.00 80.00 66.67 65.00 68.00 Pizza Place if it decides to increase production from 4 to 5 units?

The average variable and average fixed costs for questions. Output 1 2 3 4 5 Average Fixed Cost 50.00 25.00 16.67 12.50 10.00 Pizza Place are listed in the table below. Use the information provided to answer the next three Pizza Place Costs Use the table above to answer the next three questions: 1. What is Pizza Place's total fixed cost? 2. If Pizza Place produces four units, what is its average total cost? 3. What is the marginal cost to Average Variable Cost 100.00 80.00 66.67 65.00 68.00 Pizza Place if it decides to increase production from 4 to 5 units?

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 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Are fixed costs also sunk costs? Explain.