The following table shows a car manufacturer’s total cost of producing cars: Quantity of Car Total Cost 0 450, 000 1 500, 000 2 550, 000 3 600, 000 4 650, 000 5 700, 000 6 750, 000 7 800, 000 8 850, 000 9 900, 000 10 950,000 What is this manufacturer’s fixed cost? For each level of output (except zero output), calculate the variable cost (VC). Calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? For each level of output, calculate this manufacturer’s marginal cost (MC). On one diagram, draw the manufacturer’s AVC, ATC, and MC curves.
The following table shows a car manufacturer’s total cost of producing cars: Quantity of Car Total Cost 0 450, 000 1 500, 000 2 550, 000 3 600, 000 4 650, 000 5 700, 000 6 750, 000 7 800, 000 8 850, 000 9 900, 000 10 950,000 What is this manufacturer’s fixed cost? For each level of output (except zero output), calculate the variable cost (VC). Calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output? For each level of output, calculate this manufacturer’s marginal cost (MC). On one diagram, draw the manufacturer’s AVC, ATC, and MC curves.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQ
Related questions
Question
The following table shows a car
|
Quantity of Car |
|
Total Cost |
|
0 |
|
450, 000 |
|
1 |
|
500, 000 |
|
2 |
|
550, 000 |
|
3 |
|
600, 000 |
|
4 |
|
650, 000 |
|
5 |
|
700, 000 |
|
6 |
|
750, 000 |
|
7 |
|
800, 000 |
|
8 |
|
850, 000 |
|
9 |
|
900, 000 |
|
10 |
|
950,000 |
- What is this manufacturer’s fixed cost? For each level of output (except zero output), calculate the variable cost (VC).
- Calculate the
average variable cost (AVC),average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output?
- For each level of output, calculate this manufacturer’s marginal cost (MC).
- On one diagram, draw the manufacturer’s AVC, ATC, and MC
curves.
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