The following Table describes the costs of production for a local firmQuantity(0)TCAPCAVCATCMC120241520Note: Q quanti, PC: Variable Cost, MC Marginal Cost, AVC: Average variable cost,TC: Total Cost AFC Average fixed cost, ATC: Average total cost541. Find A, B, C,2. Does the technology reflected above exhibit decreasing returns to scale? Explain3. Find the output level that maximizes marginal product. Explains!

Recall the following concepts: Variable Cost (VC): Costs which increase with increase in quantity…

The fllowing Table describes the costs of production for a local firm Quantity vc TC APC AVC ATC MC 120 24 15 20 NeO quani PC Fariable Cost MC Marginal Cot APC Average variable cot TC Total Cost AFC Average faed cost ATC: Average otal cont 54 1. Find A, B, C

The fllowing Table describes the costs of production for a local firm Quantity vc TC APC AVC ATC MC 120 24 15 20 NeO quani PC Fariable Cost MC Marginal Cot APC Average variable cot TC Total Cost AFC Average faed cost ATC: Average otal cont 54 1. Find A, B, C

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 7PA

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Question

The following Table describes the costs of production for a local firm
Quantity
(0)
TC
APC
AVC
ATC
MC
120
24
15
20
Note: Q quanti, PC: Variable Cost, MC Marginal Cost, AVC: Average variable cost,
TC: Total Cost AFC Average fixed cost, ATC: Average total cost
54
1. Find A, B, C,
2. Does the technology reflected above exhibit decreasing returns to scale? Explain
3. Find the output level that maximizes marginal product. Explains!

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