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A. Fill in the formula for AFC, AVC, ATC, and MC at the top of the column in the gray section within the table. B. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, and MC in the blue sections of the table.

Output

Total Fixed Cost

Total Variable Cost

Total Cost

Average Fixed Cost

Average Variable Cost

Average Total Cost

Marginal Cost

0

 

 

$600

 

 

 

 

5

 

 

900

 

 

 

 

10

 

 

1,150

 

 

 

 

15

 

 

1,350

 

 

 

 

20

 

 

1,600

 

 

 

 

25

 

 

1,900

 

 

 

 

30

 

 

2,275

 

 

 

 

35

 

 

2,725

 

 

 

 

40

 

 

3,375

 

 

 

 

45

 

 

4,225

 

 

 

 

50

 

 

5,325

 

 

 

 

C. Identify the efficient scale of the firm. Explain your reasoning.

 

Part II. Consider the values in the following table for the Winsome Widget Factory

Winsome Widget Factory

Output

Long-Run Average Total Cost

0

------------------

5

170

10

110

15

85

20

83

25

78

30

75

35

75

40

80

45

82

50

97

a. Over what output levels do the economics of scale occur? Explain.

b. Over what output levels do constant returns to scale occur? Explain.

c. Over what output levels do diseconomies of scale occur? Explain.

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019

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