Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. The table below shows a car manufacturer's total cost of producing cars. Review the data provided and answer the questions that follow. (40 points)

image text in transcribed

image text in transcribed
2. The table below shows a car manufacturer's total cost of producing cars. Review the data provided and answer the questions that follow. (40 points) Q TC TVC AVC AFC ATC MC 0 $500,000 1 540.000 4000 00 40000 5000CO 540000 40,000 2 560,000 600000 30 000 250000 280000 20000 570,000 70,000 23,383 166,667 190000 10000 590,000 90.000 22 500 125.000 147,500 20.000 5 620.060 120.000 24 0CO 100,000 124.000 30,000 6 $60,000 160,000 26,667 83 383 110.000 40,600 720,000 220.000 31.429 71 429 103 857 60.000 800,000 300.000 37,500 52,500 100,000 80.000 920,COO 420 000 46,667 55,555 102.222 120.000 10 1,100,000 600,000 60,000 50 000 1 10.000 180.600 all For each level of output, calculate the total variable cost [TVC], the average variable cost [AVC], the average fixed cost [AFC], the average total cost [ATC], and the marginal cost [MC]. Show the first calculation for each missing column of data. (20pts) b. What is this manufacturer's fixed cost? Explain how you derived this. (10pts) c. Create a single, well-labeled diagram that shows the manufacturer's AVC, ATC, and Mc curves. (10pts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Principles of Economics

Authors: Tyler Cowen, Alex Tabarrok

3rd edition

1429278390, 978-1429278416, 1429278412, 978-1429278393

Students also viewed these Economics questions