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With the tax at $10 per unit of output, at what output is the value for the new AC at it’s minimum? With the level of fixed cost at 50,000 at what ou

With the tax at $10 per unit of output, at what output is the value for the new AC at it’s minimum? With the level of fixed cost at 50,000 at what ou

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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With the tax at $10 per unit of output, at what output is the value for the new AC at it’s minimum? With the level of fixed cost at 50,000 at what output is the value for the new AC at its minimum?
3 4 5 TC 300,000 250,000 200,000 150,000 100,000 50,000 TC (BASE) TC (NEW) 0 0 1500 3000 4500 6000 7500 9000 MC, AC 100 80 60 40 20 MC(NEW) MC(BASE) AC(NEW) AC(BASE) 0 0 1500 3000 4500 6000 7500 9000 BASELINE COSTS TC (BASE) AC (BASE) MC (BASE) TC (NEW) AC (NEW) MC (NEW) NEW COSTS Output Fixed cost POLICY VARIABLES Tax per unit AC(NEW)-MC(NEW) Questions $102,430 $25.61 $35.56 Go to answer sheet Reset to baseline Print $127,430 $31.86 $35.56 4,000 50,000 $0.00 -$3.70
Transcribed Image Text:3 4 5 TC 300,000 250,000 200,000 150,000 100,000 50,000 TC (BASE) TC (NEW) 0 0 1500 3000 4500 6000 7500 9000 MC, AC 100 80 60 40 20 MC(NEW) MC(BASE) AC(NEW) AC(BASE) 0 0 1500 3000 4500 6000 7500 9000 BASELINE COSTS TC (BASE) AC (BASE) MC (BASE) TC (NEW) AC (NEW) MC (NEW) NEW COSTS Output Fixed cost POLICY VARIABLES Tax per unit AC(NEW)-MC(NEW) Questions $102,430 $25.61 $35.56 Go to answer sheet Reset to baseline Print $127,430 $31.86 $35.56 4,000 50,000 $0.00 -$3.70
A TC 300,000 250,000 200,000 150,000 100,000 50,000 0 + Q 0 1500 3000 4500 6000 7500 9000 MC, AC 100 80 60 40 20 0 0 TC (BASE) TC (NEW) MC(NEW) MC(BASE) AC(NEW) AC(BASE) 1500 3000 4500 6000 7500 9000 BASELINE COSTS TC (BASE) AC (BASE) MC (BASE) TC (NEW) AC (NEW) MC (NEW) NEW COSTS Output Fixed cost POLICY VARIABLES Tax per unit AC(NEW)-MC(NEW) Questions $102,430 $25.61 $35.56 Go to answer sheet Reset to baseline Print $142,430 $35.61 $45.56 4,000 25,000 $10.00 -$9.95
Transcribed Image Text:A TC 300,000 250,000 200,000 150,000 100,000 50,000 0 + Q 0 1500 3000 4500 6000 7500 9000 MC, AC 100 80 60 40 20 0 0 TC (BASE) TC (NEW) MC(NEW) MC(BASE) AC(NEW) AC(BASE) 1500 3000 4500 6000 7500 9000 BASELINE COSTS TC (BASE) AC (BASE) MC (BASE) TC (NEW) AC (NEW) MC (NEW) NEW COSTS Output Fixed cost POLICY VARIABLES Tax per unit AC(NEW)-MC(NEW) Questions $102,430 $25.61 $35.56 Go to answer sheet Reset to baseline Print $142,430 $35.61 $45.56 4,000 25,000 $10.00 -$9.95
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