03 Jun Question 1. The accompanying table shows
Question
1. The accompanying table shows a car manufacturer’s total cost of producing cars.
Quantity of cars Total Cost
0 $500,000
1 $540,000
2 $560,000
3 $570,000
4 $590,000
5 $620,000
6 $660,000
7 $720,000
8 $800,000
9 $920,000
10 $1,100,000
a. What is this manufacturer’s fixed cost?
b. For each level of output except zero output, calculate this manufacturer’s marginal cost (MC).
c. For each level of output except zero output, calculate the variable cost (VC).
d. For each level of output except zero output, calculate the average variable cost (AVC),
e. For each level of output, calculate the average total cost (ATC),
f. For each level of output except zero output, calculate the average fixed cost (AFC).
Quantity of cars Total Cost Marginal Cost
b. Variable Cost
c. Average Variable Cost
d. Average Total Cost
e. Average Fixed Cost
f.
0 $500,000 — — — — —
1 $540,000
2 $560,000
3 $570,000
4 $590,000
5 $620,000
6 $660,000
7 $720,000
8 $800,000
9 $920,000
10 $1,100,000
g. What number of cars is the manufacturer’s minimum cost output level?
2. You produce widgets. Currently you produce 4 widgets at a total cost of $40.
a. What is your average total cost?
b. Suppose you could produce one more (the fifth) widget at a marginal cost of $5. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?
c. Suppose instead that you could produce one more (the fifth) widget at a marginal cost of $20. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.