EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 11, Problem 4DQ
To determine
Productive efficiency and allocative efficiency .
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Consider table 3.1. What is the dollar amount of average variable cost per unit at the production level of 600 units?
TC=3205
Production
(units)
0
100
Select one:
O a. 4.04
O b. 4.34
Oc 4.74
O d. 5.04
200
300
400
500
600
700
Rent
$300
$300
$300
$300
Wages
$200
$410
$650
$900
$1,200
$300
$300
$1,520
$300
$1,905
$300 $2,300
Supplies Tools
$0
$100
50
$100
$150
$200
$250
$300
$350
$200
$300
$400
$500
$600
$700
$800
Total Cost
$600
$960
$1,350
$1,750
$2,200
$2,670
$3,205
$3,750
3205
700
300
2,205 TVC
1
-
2205/600=
3.675
A
4. Various measures of cost
Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table
presents the brand's total cost of production at several different quantities.
Fill in the remaining cells of the following table.
Quantity Total Cost Marginal Cost
(Pairs) (Dollars) (Dollars)
0
1
2
3
4
LO
5
6
120
200
240
285
340
425
540
Fixed Cost Variable Cost
(Dollars) (Dollars)
Average Variable Cost
(Dollars per pair)
Average Total Cost
(Dollars per pair)
The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for totalcost, average variable cost, average total cost, and marginal cost.
Chapter 11 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
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