EBK PRINCIPLES OF MICROECONOMICS
7th Edition
ISBN: 8220101472380
Author: Mankiw
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 13.3, Problem 3QQ
To determine
Marginal cost for a fifth car.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Suppose Honda’s total cost of producing 4 cars is $225,000 and its totalcost of producing 5 cars is $250,000. What is the average total cost of producing 5 cars?
What is the marginal cost of the fifth car? • Draw the marginal-cost curve and the average-total-cost curve for a typical firm, and explain why these curves cross where they do.
© Macmillan Learning
The figure depicts the long-run average total cost curve for Magma Motors. If this firm is currently producing 11,000 cars
per year, what does it experience if it increases output by 1,000 cars?
Figure: Long-Run Average Total Cost Curve for Magma Motors
Cost
(per car)
$5,000
4,000
0
Long-run
average
total cost
$10,000
11,000 12,000
Quantity
economies of scope
economies of scale
minimum efficient scale
diseconomies of scale
Consider the production of hamburgers. The average total cost (ATC) and
average fixed cost (AFC) of producing hamburgers are illustrated in the
graph to the right
Use the four-point curve drawing tool to graph the average variable cost of
producing one, two, three, and four thousand hamburgers. Properly label this
curve
Carefully follow the instructions above, and only draw the required objects.
Cost (cente per unit)
26
24-
22-
20
18-
16
14-
12-
10
B
6
4-
2
ATC
AFG
Quantity of hamburgers (in 1000s)
Q
du
Chapter 13 Solutions
EBK PRINCIPLES OF MICROECONOMICS
Ch. 13.1 - Prob. 1QQCh. 13.2 - Prob. 2QQCh. 13.3 - Prob. 3QQCh. 13.4 - Prob. 4QQCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQ
Ch. 13 - Prob. 1QRCh. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QRCh. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - Prob. 6PACh. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PA
Knowledge Booster
Similar questions
- How do we calculate each of the following: marginal cost, average total cost, and average variable cost?arrow_forwardWhat shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?arrow_forwardWhat was her economic profit or loss for the year?arrow_forward
- (1) Use the graph to answer the question. The graph illustrates that A-the firm's fixed costs are increasing. B-the firm is producing fewer units at every cost level C-the firm is failing to employ division of labor. D-the firm's variable and total costs are decreasing E-the firm is experiencing increasing marginal returns (2)A firm has fixed costs of $100 at 10 units. If its variable costs at 15 units are $100, what must its total cost be to produce 15 units? A-$100. B-$200. C-$250 D-$1,500. E-$2,500arrow_forward(1) Use the graph to answer the question. The graph illustrates that A-the firm's fixed costs are increasing. B-the firm is producing fewer units at every cost level C-the firm is failing to employ division of labor. D-the firm's variable and total costs are decreasing E-the firm is experiencing increasing marginal returns (2)A firm has fixed costs of $100 at 10 units. If its variable costs at 15 units are $100, what must its total cost be to produce 15 units? A- $100. B-$200. C-$250. D-$1,500. E-$2,500 (3) Use the graph to answer the question. Between points C and D, the long-run average total cost curve is characterized by ________ because the firm is experiencing ________ returns to scale. A-constant returns; constant. B-economies of scale; increasing. C-economies of scale; constant D-diseconomies of scale; increasing. E-diseconomies of scale; decreasingarrow_forwardPlease give me proper calculation and full explanation otherwise i give downvotearrow_forward
- Refer to Figure 13-4. Curve A represents which type of cost curve? O marginal cost O average total cost O average variable cost average fixed costarrow_forward4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of operation. Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to scale, and diseconomies of scale. Identify each of these sections of the cost curve and explain why each section exemplifies its specific type of return to scale.arrow_forwardConsider total cost and total revenue given in the following table: TABLE IN IMAGE Calculate profit for each quantity. How much should the firm produce to maximize profit?(ii) Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points betweenwhole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2½.) At what quantitydo these curves cross? How does this relate to your answer to part (a)?(iii) Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in along-run equilibrium? (8.75)arrow_forward
- By doubling a machine's inputs, the output increases three times. How does this affect cost and what does this characterize? O Per unit costs rises, Diseconomies of Scale O Per unit costs falls, Economies of Scale O Per unit costs remains the same, Constant Economies of Scale O Per unit cost rises, Economies of scale Per unit cost falls, diseconomies of scale.arrow_forward5. Provide the formula/calculation for the following costs: Average Total Cost, Average Fixed Cost, Average Variable Cost, Marginal Cost.arrow_forwardThe table below shows cost data for WipeOutSki Company, which manufactures skis for beginners. If the company's fixed costs are $30, what is the average total cost in B? Variable Fixed Total Average Cost $30 $30 $30 $30 $30 $30 $30 Quantity Cost Average Total Marginal Cost Cost Variable Cost Cost $10 $25 $45 $70 $100 $135 1 2 A 345Oarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning