Calculation and graphical representation of tfc

Assignment Help Macroeconomics

Reference no: EM1315380

A firm has fixed costs of $60 and variable costs as indicated in the table below. Complete the table.

Total product	Total fixed cost	Total variable cost	Total cost	Average fixed cost	Average variable cost	Average total cost	Marginal cost

0	$____	$0	$____
1	_____	45	_____	$____	$____	$____	$____
2	_____	85	_____	_____	_____	_____	_____
3	_____	120	_____	_____	_____	_____	_____
4	_____	150	_____	_____	_____	_____	_____
5	_____	185	_____	_____	_____	_____	_____
6	_____	225	_____	_____	_____	_____	_____
7	_____	270	_____	_____	_____	_____	_____
8	_____	325	_____	_____	_____	_____	_____
9	_____	390	_____	_____	_____	_____	_____
10	_____	465	_____	_____	_____	_____	_____

a. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the total variable-cost and total? Cost curves.

b. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relationships to one another. Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and ATC curves at their minimum points.

c. Explain how the locations of each of the four curves graphed in question 7b would be altered if (1) total fixed cost had been $100 rather than $60, and (2) total variable cost had been $10 less at each level of output.

Reference no: EM1315380

Questions Cloud

Publisher also the analyst making about price elasticity : Illustrate what implicit assumptions is the publisher also the analyst making about price elasticity.

Finding regression equation : If wages were increased by $1.00, what is the expected effect on the number of complaints received per employee? How can you tell?

Computation of various financial ratios : Computation of various financial ratios from the given information and obtained from the accounting records of Hamberg Company at the end of its fiscal year

Lan based attacks : Discuss or describe one or more LAN based attacks (also known as layer 2 attacks or lower layer attacks) or share any additional thoughts you may have on the LAN based attacks.

Calculation and graphical representation of tfc : Explain how the locations of each of the four curves graphed in question 7b would be altered if (1) total fixed cost had been $100 rather than $60, and (2) total variable cost had been $10 less at each level of output.

One important difference between an entrepreneurs manager : One important difference between an entrepreneurs also a manager is which the former gets into a market before demand increases, while the later gets into the market after the shift.

Elucidate how does consumer surplus : Elucidate how does consumer surplus after the discovery compare to Illustrate what would exist if the New Jersey oil were supplied competitively.

Find the sum/difference as a product of sine’s or cosines : Find the sum/difference as a product of sine’s or cosines.

Graph the demand data by using the midpoint formula : Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.

User Account

All Pages