If the firm sells 5 units at a price of $30 each, then theQuantity Cost01230156(in Costsdollars) (in0Fixed Total AverageCostsTotal Costs(in (in dollarsper unit)3560dollars) dollars)15 40 5540 4040 75 37.540 100125 40 16555160 40 200marginal unit producedAverage VariableCosts (in dollars perunit)90 40 130 32.5 22.51533.317.533.3 2026.6MarginalCosts(in dollarsper unit)152040is subtracting from profits.the purchase price is higher than the averagecost.the purchase price is the same as the averagecost.is adding to profits.

Where the marginal revenue is equal to marginal cost to maximize its profit. Profit is the…

If the firm sells 5 units at a price of $30 each, then the Quantity Cost Fixed Total Average (in Costs Costs Total Costs 0 1 2 3 4 so dollars) (in (in (in dollars dollars) dollars) per unit) 6 0 15 40 40 40 55 55 35 40 75 5 125 40 90 40 60 40 100 33.3 .. 37.5 130 32.5 160 40 200 165 33 marginal unit produced 33.3 Average Variable Costs (in dollars per unit) : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.

If the firm sells 5 units at a price of $30 each, then the Quantity Cost Fixed Total Average (in Costs Costs Total Costs 0 1 2 3 4 so dollars) (in (in (in dollars dollars) dollars) per unit) 6 0 15 40 40 40 55 55 35 40 75 5 125 40 90 40 60 40 100 33.3 .. 37.5 130 32.5 160 40 200 165 33 marginal unit produced 33.3 Average Variable Costs (in dollars per unit) : 15 17.5 20 22.5 25 26.6 Marginal Costs (in dollars per unit) : 15 20 25 30 35 40 is subtracting from profits. the purchase price is higher than the average cost. the purchase price is the same as the average cost. is adding to profits.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...

See similar textbooks

Similar questions

How does fixed cost affect marginal cost? Why is this relationship important?
What is die difference between accounting and economic profit?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
Are fixed costs also sunk costs? Explain.
What is a production technology?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
What are explicit and implicit costs?
Your cousin Vinnie owns a painting company withfixed costs of S200 and the following schedule forvariable costs:Quan tityof H()usesPaintedper MonthVarialilleCosts2 3 4 5 6 7$10 $20 $40 $80 $160 $320 $640Calculate average fixed cost.. average variable cost,and average total cost for each quantity. What is theefficient scalo of the painting company?
Table 13-7The Flying Elvis Copter Rides Quantity TotalCost FixedCost VariableCost MarginalCost AverageFixedCost AverageVariableCost AverageTotalCost 0 $50 $50 $0 -- -- -- -- 1 $150 A B C D E F 2 G H I $120 J K L 3 M N O P Q $120 R Refer to Table 13-7. Fill in ALL THE VALUES FROM A to R in the table.