ECON 2030 Chapter : Menu 19 Jun 15
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2. Complete the following cost table:
Q |
FC |
VC |
TC |
MC |
AFC |
AVC |
ATC |
0 |
- |
- |
- |
- |
|||
1 |
10 |
||||||
2 |
18 |
5 |
|||||
3 |
23 |
||||||
4 |
6.5 |
where FC is fixed cost, VC is variable cost, TC is total cost, MC is marginal cost, AFC is average fixed cost, AVC is average variable cost, and ATC is average total cost.
Shows the hourly production and Total Cost estimates for a new manufacturing firm wishing to enter the smartphone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values. Table 1. Smart cell phones produced in an hour Total Cost (TC) Variable Costs (VC) Average Variable Costs (AVC) Average Total Costs (ATC) Average fixed Cost (AFC) Marginal Cost (MC) a. b. c. d. e. 0 $3,200 n/a n/a n/a n/a 15 $3,525 30 $3,875 45 $4,250 60 $4,650 75 $5,075 90 $5,525 105 $6,725 120 $8,210 135 $9,950
Smart cell phones produced in an hour |
Total Cost (TC) |
Variable Costs (VC) |
Average Variable Costs (AVC) |
Average Total Costs (ATC) |
Average Fixed Cost (AFC) |
Marginal Cost (MC) |
a. |
b. |
c. |
d. |
e. |
||
0 |
$3,200 |
n/a |
n/a |
n/a |
n/a |
|
15 |
$3,525 |
|||||
30 |
$3,875 |
|||||
45 |
$4,250 |
|||||
60 |
$4,650 |
|||||
75 |
$5,075 |
|||||
90 |
$5,525 |
|||||
105 |
$6,725 |
|||||
120 |
$8,210 |
|||||
135 |
$9,950 |