Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 6400 a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?

Essentials of Economics (MindTap Course List)
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Author:N. Gregory Mankiw
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Chapter12: The Cost Of Production
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Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows:

1. Show to calculate for the table below

Output

TFC

TVC

TC

AFC

AVC

ATC

MC

0

 

 

1000

 

 

 

 

1

 

100

 

 

 

 

 

2

 

 

 

 

 

 

100

3

 

400

 

 

 

 

 

4

 

 

 

 

 

450

 

5

 

1600

 

 

 

 

 

6

 

3200

 

 

 

 

 

7

 

6400

 

 

 

 

 

a) Given the partial data available, finish the table and calculate all the costs.
b) What is the minimum efficient scale of Vinnie’s company?
c) What is the marginal cost of 6 houses?
d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?

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