Question 3a). Consider the table below, which shows the total fixed costs (TFC) and total variable costs (TVC) for producing specialty bicycles in a small factory with a fixed amount of capital. For each level of output per year, calculate AFC, AVC and ATC You can print this table and fill in the columns (by hand) for AFC, AVC and ATC. Output per year TFC ($000s) TVC (5000s) AFC (S000s) AVC ($000s) ATC (5000s) 000s of bicycles 1 2 3 4 5 6 7 8 9 10 11 200 200 200 200 200 200 200 200 200 200 200 40 70 105 120 135 155 185 230 290 350 425 Question 3b) Plot the AFC. AVC and ATC curves on a scale diagram (by hand) with dollars on the vertical axis and output of bicycles on the horizontal axis. Do not plot the curves for 1000 and 2.000 units start at 3.000 units
Question 3a). Consider the table below, which shows the total fixed costs (TFC) and total variable costs (TVC) for producing specialty bicycles in a small factory with a fixed amount of capital. For each level of output per year, calculate AFC, AVC and ATC You can print this table and fill in the columns (by hand) for AFC, AVC and ATC. Output per year TFC ($000s) TVC (5000s) AFC (S000s) AVC ($000s) ATC (5000s) 000s of bicycles 1 2 3 4 5 6 7 8 9 10 11 200 200 200 200 200 200 200 200 200 200 200 40 70 105 120 135 155 185 230 290 350 425 Question 3b) Plot the AFC. AVC and ATC curves on a scale diagram (by hand) with dollars on the vertical axis and output of bicycles on the horizontal axis. Do not plot the curves for 1000 and 2.000 units start at 3.000 units
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text:Question 3a). Consider the table below, which shows the total fixed costs (TFC) and total
variable costs (TVC) for producing specialty bicycles in a small factory with a fixed amount of
capital. For each level of output per year, calculate AFC, AVC and ATC. You can print this
table and fill in the columns (by hand) for AFC. AVC and ATC.
Output per year TFC ($000s) TVC (5000s) AFC ($000s) AVC ($000s) ATC ($000s)
000s of bicycles
1
2
32
4
5
6
7
8
9
10
11
200
200
200
200
200
200
200
200
200
200
200
40
70
105
120
135
155
185
230
290
350
425
Question 3b) Plot the AFC, AVC and ATC curves on a scale diagram (by hand) with dollars on
the vertical axis and output of bicycles on the horizontal axis. Do not plot the curves for
1000 and 2.000 units start at 3.000 units
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