EBK MICROECONOMICS
12th Edition
ISBN: 9780100659452
Author: PARKIN
Publisher: YUZU
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Question
Chapter 11, Problem 27APA
a)
To determine
Long run average cost curve.
b)
To determine
Use of long run average cost curve.
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The following table shows data for quantity (Q), variable cost (VC), and fixed cost
(FC) for a ski company.
a) Fill the table for total cost (TC), average variable cost (AVC), average total cost
(ATC), and marginal cost (MC). Make sure to show your work for at least one
line.
Q
VC
FC
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ATC
AVC
MC
30
1
10
30
25
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3
45
30
4
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100
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b) Now suppose the firm decides to produce a quantity of 5 units (Q=5), and it
sells for a price of $25 each. Answer the following:
1. Calculate the company's profits or losses
2. How can you tell at a glance whether the company is making or losing money
at this price by looking at average cost?
3. At the given quantity and price, is the marginal unit produced adding or
subtracting to profits? Should the fırm produce at this level of output?
Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total cost, and marginal cost for eachquantity.b. Graph all three curves. What is the relationship between the marginal-cost curveand the average-total-cost curve? Between the marginal-cost curve and the averagevariable-cost curve? Explain.
14. Explain which of the following is a fixed cost or a variable cost
for Southwest Airlines.
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b. The monthly rent on its Dallas, Texas headquarters.
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f. The gate rental fees it pays to McCarran International
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Chapter 11 Solutions
EBK MICROECONOMICS
Ch. 11.1 - Prob. 1RQCh. 11.1 - Prob. 2RQCh. 11.2 - Prob. 1RQCh. 11.2 - Prob. 2RQCh. 11.2 - Prob. 3RQCh. 11.3 - Prob. 1RQCh. 11.3 - Prob. 2RQCh. 11.3 - Prob. 3RQCh. 11.3 - What is the shape of the AFC curve and why does it...Ch. 11.3 - Prob. 5RQ
Ch. 11.4 - Prob. 1RQCh. 11.4 - Prob. 2RQCh. 11.4 - Prob. 3RQCh. 11.4 - Prob. 4RQCh. 11.4 - Prob. 5RQCh. 11 - Prob. 1SPACh. 11 - Prob. 2SPACh. 11 - Prob. 3SPACh. 11 - Prob. 4SPACh. 11 - Prob. 5SPACh. 11 - Prob. 6SPACh. 11 - Prob. 7SPACh. 11 - Prob. 8SPACh. 11 - Prob. 9SPACh. 11 - Prob. 10SPACh. 11 - Prob. 11SPACh. 11 - Prob. 12SPACh. 11 - Prob. 13SPACh. 11 - Prob. 14SPACh. 11 - Prob. 15APACh. 11 - Prob. 16APACh. 11 - Prob. 17APACh. 11 - Prob. 18APACh. 11 - Prob. 19APACh. 11 - Prob. 20APACh. 11 - Prob. 21APACh. 11 - Prob. 22APACh. 11 - Prob. 23APACh. 11 - Prob. 24APACh. 11 - Prob. 25APACh. 11 - Prob. 26APACh. 11 - Prob. 27APACh. 11 - Prob. 28APACh. 11 - Prob. 29APACh. 11 - Prob. 30APACh. 11 - Prob. 31APA
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