In: Economics
Answer the following key problem about Production Costs, which we discussed in class:
The following table represents the cost schedule, in dollars, for our college softball team uniforms:
Q |
TFC |
TVC |
TC |
AFC |
AVC |
ATC |
MC |
0 |
$100 |
$0 |
- |
- |
- |
- |
|
1 |
90 |
||||||
2 |
170 |
||||||
3 |
240 |
||||||
4 |
300 |
||||||
5 |
370 |
||||||
6 |
450 |
||||||
7 |
540 |
||||||
8 |
650 |
||||||
9 |
780 |
||||||
10 |
930 |
A) Fill in the rest of the table.
B) Plot TFC, TVC, and TC together on the same graph.
C) Using your graph from part a, what is the relationship between TFC, TVC and TC?
D) Now, plot AFC, AVC, ATC, and MC together on a separate graph.
E) Using your graph from part 3, what is the relationship between the AVC, ATC, and MC?
F) How do economies of scale relate to the AFC curve on your graph?