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Total fixed cost divided by the level of output yields O average total cost per unit O marginal cost per unit O marginal productivity per unit of fixed resource O average variable cost per unit O average fixed costs per unit All else equal, if the prices of a firms variable inputs were to fall: O MC and AVC only would fall O MC only would fall O MC, AVC, and ATC (only) would fall Q MC, AVC, ATC, and AFC all would fall The chart below provides total cost and total revenue for a firm in a perfectly competitive market selling masks: Q TR TC 0 $0 $10 1 $22 $20 2 $44 $25 3 $66 $35 4 $88 $51 5 $110 $72 6 $132 $96 7 $154 $124 8 $176 $154 The marginal cost of the 6th blanket is: 0 - $19 0 $22 0 $36 0 $16 0 - $3 0 $55 0 $24 When output = 10, average fixed costs (AFC) = $3; and total variable costs (TVC) = $10
Total fixed cost divided by the level of output yields
O average total cost per unit O marginal cost per unit O marginal productivity per unit of fixed resource O average variable cost per unit O average fixed costs per unit
All else equal, if the prices of a firms variable inputs were to fall:
O MC and AVC only would fall O MC only would fall O MC, AVC, and ATC (only) would fall Q MC, AVC, ATC, and AFC all would fall
The chart below provides total cost and total revenue for a firm in a perfectly competitive market selling masks:
Q TR TC 0 $0 $10 1 $22 $20 2 $44 $25 3 $66 $35 4 $88 $51 5 $110 $72 6 $132 $96 7 $154 $124 8 $176 $154
The marginal cost of the 6th blanket is:
0 - $19 0 $22 0 $36 0 $16 0 - $3 0 $55 0 $24
When output = 10, average fixed costs (AFC) = $3; and total variable costs (TVC) = $10. Average total costs (ATC) =
CD can not be determined
0 $13 0 $4 0 $1.30
a $130
Expert Solution
1) Computation of Average Total Cost per Unit:
Average Total Cost per Unit = Average Fixed Cost per Unit + Average Variable Cost per Unit
= $3 + $10
= $13
So, the correct option is 3rd "$13".
2) Computation of Marginal Cost of 6th Blanket:
Marginal Cost of 6th Blanket = (Total Cost of 6th Blanket - Total Cost of 5th Blanket)/(Total Change in Quantity)
= ($96-$72)/(6-5)
= $24/1
= $24
So, the correct option is 7th "$24".
3)
All else equal, if the price of a firm variable input were to fall the Marginal cost will fall because it is the cost of one extra unit employed in the production. The average variable cost will fall because it is the average cost of the variable inputs lower the cost lower the average will be. and ATC will fall but not the Fixed cost. Fixed cost will remain the same but the total cost will fall as the average variable cost is falling. So, The correct option is 3rd "MC, AVC and ATC (only) would fall".
4) The total fixed cost divided by the level of output yields is Average Fixed Cost per Unit.
Average Fixed Cost per Unit = Total Fixed Cost / Total Output
So, the correct option is 5th "Average Fixed Cost per Unit".
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