Question

In: Economics

Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves.

INSTRUCTIONS FOR TABLE 1 and Two Graphs-21 points

1) Calculate the Total Cost (TC) for each level of output. (3 points)

2) Calculate the Average Fixed Cost (AFC) for each level of output. (3 points)

3) Calculate the Average Variable Cost (AVC) for each level of output. (3 points)

4) Calculate the Average Total Cost (ATC) for each level of output. (3 points)

5) Calculate the Marginal Cost (MC) for each level of output. (3 points)

Using the data from Table 1 draw two graphs:

Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves. (3 points)

Draw a graph showing the Average Fixed Cost, Average Variable Cost, and Average Total Cost curves and Marginal Cost curve. (3 points)

TABLE 1

(1) (2) (3) (4) (5) (6) (7) (8)

Total Total Total Total Average Average Average Marginal

Product Fixed Variable Cost Fixed Variable Total Cost

Cost Cost Cost Cost Cost

(Q) (TFC) (TVC) (TC) (AFC) (AVC) (ATC) (MC)

0 $100 0 $______ ______

1 100 90 ______ ______ ______ ______ ______

2 100 170 ______ ______ ______ ______ ______

3 100 240 ______ ______ ______ ______ ______

4 100 300 ______ ______ ______ ______ ______

5 100 370 ______ ______ ______ ______ ______

6 100 450 ______ ______ ______ ______ ______

7 100 540 ______ ______ ______ ______ ______

8 100 650 ______ ______ ______ ______ ______

9 100 780 ______ ______ ______ ______ ______

10 100 930 ______ ______ ______ ______ ______

Expert Solution

Q	TFC	TVC	TC	AFC	AVC	AC	MC
0	100	0	100
1	100	90	190	100	90	190	90
2	100	170	270	50	85	135	80
3	100	240	340	33	80	113	70
4	100	300	400	25	75	100	60
5	100	370	470	20	74	94	70
6	100	450	550	17	75	92	80
7	100	540	640	14	77	91	90
8	100	650	750	13	81	94	110
9	100	780	880	11	87	98	130
10	100	930	1030	10	93	103	150

TC=FC+VC
VC=TC-FC
ATC=TC/Q
AVC=VC/Q
AFC=FC/Q
MC=CHANGE IN TC/CHANGE IN Q

Rahul Sunny answered 2 years ago

A. draw a graph showing the marginal cost, average total cost, demand, marginal revenue, and average...

A. draw a graph showing the marginal cost, average total cost, demand, marginal revenue, and average revenue for a perfectly competitive firm. Indicate the level of profit where profit is maximized, shade in the area of maximum profit, give the amount of maximum profit, and explain how this number is calculated. B.Graph the short-run supply curve for a perfectly competitive firm and explain where this short-run supply curve lies. Indicate the following curves on your graph: marginal cost curve, marginal...

Illustrate the total cost graph. You must include total costs, variable costs and fixed costs.

For the pizza seller whose marginal, average variable and average total cost curves are shown in the graph below

For the pizza seller whose marginal, average variable and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.00 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output. Enter your response as a whole number.At the profit-maximizing level of output,...

Draw a typical Total Product (TP) curve in one graph. Right under the graph showing the...

Draw a typical Total Product (TP) curve in one graph. Right under the graph showing the TP curve, draw a typical Average Product and Marginal Product curves in another graph; using the same scales. On the graphs, show the three stages of production. Justify the rationale for dividing the production process into the three stages.

Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...

Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average Variable Cost Marginal Cost 0 30 1 75 2 150 3 255 4 380 5 525 6 680 7 840 8 1010 9 1200 Given the quantity and total cost, calculate for total fixed cost, total variable cost, average fixed cost, average total cost, average variable cost, and marginal cost. Excel formulas would be nice but not required.

Draw a graph for a monopoly with demand, marginal revenue, and marginal cost curves.

Assignment: Draw a graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). (Photos of your work are not accepted) Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. What happens to the firm’s profits? Does price discrimination lead to a more efficient or less efficient outcome? Why...

Using a marginal cost (MC), average variable costs (AVC), and average total costs (ATC) curves, graph...

Using a marginal cost (MC), average variable costs (AVC), and average total costs (ATC) curves, graph the break-even point and shutdown point for a firm. Explain why these two points are key in an entrepreneur’s decision making in the short-run or long-run.

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average...

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 0 25 0 1 4 25 25 2 10 25 50 3 13 25 75 4 15 25 100 5 16 25 125 (a) Complete the blank columns. (b) Assume the price of this product equals $10. What’s the profit-maximizing output (q)? Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit...

SUMMARIZE YOUR CALCULATIONS AND USE MICROSOFT EXCEL. DRAW ONE GRAPH SHOWING AVERAGE FIXED COSTS, AVERAGE VARIABLE COSTS, AVERAGE TOTAL COSTS, MARGINAL REVENUE AND MARGINAL COSTS.

OUTPUT AVERAGE FIXED COST AVERAGE VARIABLE COST AVERAGE TOTAL COST 0 1 $180.00 $135.00 $315.00 2 $90.00 $127.50 $217.50 3 $60.00 $120.00 $180.00 4 $45.00 $112.50 $157.50 5 $36.00 $111.00 $147.00 6 $30.00 $112.50 $142.50 7 $25.71 $115.70 $141.41 8 $22.50 $121.90 $144.40 9 $20.00 $130.00 $150.00 10 $18.00 $139.50 $157.50 OUTPUT MARGINAL COST PRICE TOTAL REVENUE TOTAL REVENUE 0 $345.00 1 $300.00 2 $249.00 3 $213.00 4 $189.00 5 $165.00 6 $144.00 7 $126.00 8 $111.00 9 $99.00 10...

quantity of broomsticks fixed cost variable cost total cost average fixed cost average variable cost average...

quantity of broomsticks fixed cost variable cost total cost average fixed cost average variable cost average total cost marginal cost marginal product 0 10 $13 $38 22 $28 32 $70 41 $64 50 $110 59 $108 65 $133 70 $185 how do I fill in the blanks? as well as graph the three average cost curves and the marginal cost curve.