Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Various measures of cost Douglas Fur is a small manufacturer of fake fur boots in Houston

Various measures of cost Douglas Fur is a small manufacturer of fake fur boots in Houston

Economics

Various measures of cost Douglas Fur is a small manufacturer of fake fur boots in Houston. The following table shows the company's total cost of production at various production quantities.
Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost (Pairs) (Dollars) (Dollars) 0 60 1 160 Fixed Cost (Dollars) Variable Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) 2 220 270 3 4 340 5 450 6 630 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $160, so you should start your ATC curve by placing a green point at (1, 160). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $100, so you should start your MC curve by placing an orange square at (0.5, 100).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 200 A 175 ATC 150 125 AVC COSTS (Dollars per pair) 100 75 MC 50 25 0 0 5 2 3 4 QUANTITY (Pairs of boots)

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

FC = Total cost at output level of 0

FC + VC = TC

Marginal Cost = Additional cost from extra unit sold

AFC= FC / Quantity

AVC = VC / Quantity

ATC = AFC + AVC

Quantity Total Cost Marginal Cost (MC) Fixed Cost Variable Cost Average Variable Cost (AVC) Average Total Cost (ATC) Average Fixed Cost (AFC)
0 60 - 60 0 - - -
1 160 100 60 100 100 160 60
2 220 60 60 160 80 110 30
3 270 50 60 210 70 90 20
4 340 70 60 280 70 85 15
5 450 110 60 390 78 90 12
6 630 180 60 570 95 105 10