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?
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)
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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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 |
|
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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