Question-1 The table below shows the short run cost for producing bicycles. Complete all missing values in table below: Marginal costAverage total costAverage variable costAverage fixed costTotal costVariable costFixed costOutputLabor 0$6000 70$$6011 $140$6062 $210$60113 280$$60154 $350$60135 $420$60126 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.

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Answered: The table below shows the short run…

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-1

The table below shows the short run cost for producing bicycles.

Complete all missing values in table below:

Marginal cost	Average total cost	Average variable cost	Average fixed cost	Total cost	Variable cost	Fixed cost	Output	Labor
					0	$60	0	0
					70$	$60	1	1
					$140	$60	6	2
					$210	$60	11	3
					280$	$60	15	4
					$350	$60	13	5
					$420	$60	12	6

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.

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