Instructions 1 Fill in names of the costs Description Name of cost A small business signs a contract to rent space where they will produce brooms Due to the corona virus they temporarily shut down How would we categorize rent Grace decides to leave her job as a bank teller where she earns $45,00 plus benefits to start her own broom company Her wages and benefits are what type of cost TC (Q 1) (what cost ) The market value of all inputs the firms uses in producing the good The electricity used to produce a product What you give up when you take an alternative action AVC AFC (what cost ) What are the costs that are included by economists but not by accountants when estimating total costs Profits equal Total Revenue minus what cost Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month They hire a part time disable worker to fulfill orders Output ( Instructional modules per month ) Fixed Costs Variable Costs Total Costs Average Fixed Costs Average Variable Costs Average Total Costs Marginal Costs 0 1080 0 1080 1 1080 400 1480 1080 400 1480 400 2 1080 850 1930 540 425 965 450 3 1080 1350 2430 360 450 810 500 4 1080 1900 2980 270 475 745 550 5 1080 2500 3580 216 500 716 600 6 1080 3200 4280 180 533 33 713 33 700 7 1080 4100 5180 154 29 585 71 740 900 8 1080 5400 6480 135 675 810 1300 9 1080 7300 8380 120 811 11 931 11 1900 10 1080 9800 10880 108 980 1088 2500 1 Refer to your completed table What is the marginal cost of creating the tenth instructional module in a given month a $900 b $1,250 c $2,508 d $3,060 2 Refer to your completed table What is the average variable cost for the month if 6 instructional modules are produced a $180 00 b $533 33 c $700 00 d $713 33 3 Refer to your completed table What is the average fixed cost for the month if 9 instructional modules are produced a $108 00 b $120 00 c $150 00 d $811 11 4 Refer to your completed table How many instructional modules are produced when marginal cost is $1,300 a 4 b 5 c 7 d 8 5 Refer to your completed table One month, Teacher's Helper produced 18 instructional modules What was the average fixed cost for that month a $60 b $108 c $811 d It can't be determined from the information given 6 a On the graph below plot the Marginal Cost Curve based on the data from your table Correctly label the X and Y axis Use increments of $100's for the costs 6 b Briefly give a clear and concise economic explanation for the shape of your plotted Marginal Cost Curve

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 07, 2024

Instructions: 1. Fill in names of the costs Description Name of cost A small business signs a contract to rent space where they will produce

Instructions:

1. Fill in names of the costs

Description	Name of cost
A small business signs a contract to rent space where they will produce brooms. Due to the corona virus they temporarily shut down. How would we categorize rent?
Grace decides to leave her job as a bank teller where she earns $45,00 plus benefits to start her own broom company. Her wages and benefits are what type of cost?
TC/(Q=1) = (what cost?)
The market value of all inputs the firms uses in producing the good?
The electricity used to produce a product
What you give up when you take an alternative action?
AVC + AFC = (what cost?)
What are the costs that are included by economists but not by accountants when estimating total costs?
Profits equal Total Revenue minus what cost?

Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

They hire a part time disable worker to fulfill orders.

Output ( Instructional modules per month )	Fixed Costs	Variable Costs	Total Costs	Average Fixed Costs	Average Variable Costs	Average Total Costs	Marginal Costs
0	1080	0	1080	--	--	--	--
1	1080	400	1480	1080	400	1480	400
2	1080	850	1930	540	425	965	450
3	1080	1350	2430	360	450	810	500
4	1080	1900	2980	270	475	745	550
5	1080	2500	3580	216	500	716	600
6	1080	3200	4280	180	533.33	713.33	700
7	1080	4100	5180	154.29	585.71	740	900
8	1080	5400	6480	135	675	810	1300
9	1080	7300	8380	120	811.11	931.11	1900
10	1080	9800	10880	108	980	1088	2500

1.Refer to your completed table. What is the marginal cost of creating the tenth instructional module in a given month?

a. $900

b. $1,250

c. $2,508

d. $3,060

2.Refer to your completed table. What is the average variable cost for the month if 6 instructional modules are produced?

a. $180.00

b. $533.33

c. $700.00

d. $713.33

3.Refer to your completed table. What is the average fixed cost for the month if 9 instructional modules are produced?

a. $108.00

b. $120.00

c. $150.00

d. $811.11

4.Refer to your completed table. How many instructional modules are produced when marginal cost is $1,300?

a. 4

b. 5

c. 7

d. 8

5.Refer to your completed table. One month, Teacher's Helper produced 18 instructional modules. What was the average fixed cost for that month?

a. $60

b. $108

c. $811

d. It can't be determined from the information given.

6.a. On the graph below plot the Marginal Cost Curve based on the data from your table. Correctly label the X and Y axis. Use increments of $100's for the costs.