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5 The Wonka Corporation produces candy. The cost structure of the firm is summarized in the table below but chocolate got smeared over it, rendering
5 The Wonka Corporation produces candy. The cost structure of the firm is summarized in the table below but chocolate got smeared over it, rendering most of the numbers unreadable. TC AFC AVC ATC MC VC 0 400 240 960 340 Q FC 0 1 2 3 4 5 6 7 8 9 10 872 420 560 5600 6400 4860 820 602 (a) Use the information given to write out the full table with the missing values. Hint: Start with the fixed cost. (b) Determine the Wonka Corporation's efficient scale of production. (c) Use Excel or software of your choice to create a graph showing the average fixed cost, average variable cost, average total cost, and marginal cost curves, (d) Suppose the government places a lump-sum tax of 500 on every candy-producing firm. Explain which of the four cost curves would be affected and how (e) Suppose the government places a tax of 50 on every unit of candy produced. Explain which of the four cost curves would be affected and how
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