If a firm has a total fixed cost of $75 and an average variable cost of...

If a firm has a total fixed cost of $75 and an average variable cost of $35 for producing 10 units of output, the average total cost would be:

If a firm has an average total cost of $55 and an average fixed cost of $10 for producing 5 units of output, then the total variable cost will be:

Expert Solution

a) Total variable cost of producing 10 units of goods = 10 x $35 = $350.

Total fixed cost = $75.

The total cost of producing 10 unis of goods = $350 + $75 = $425.

The average total cost will be $425 / 10 = $42.5 is the average total cost.

b) The total cost of the firm for producing 5 units = $55 x 5 = $275

Total fixed cost = $10.

Total Variable cost = Total cost - Fixed cost

= $275 - $10 = $265 is the total variable cost of the firm.

Rahul Sunny answered 2 years ago

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.

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.

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...

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable...

No. of Products Total Variable Costs, $ Total Costs $ Average Fixed Cost $ Average Variable Cost $ Average Total Cost $ Marginal Cost$ 0 0 1 12 2 20 3 24 4 27 5 40 6 65 7 98 Assume that the fixed cost is $80, calculate the above costs in the table and explain the difference between average total costs and marginal costs. In a graph illustrate the Average Total Cost and Marginal Cost Curves, explain their relationship....

Suppose a firm has average total cost = 54 and average variable cost = 24. If...

Suppose a firm has average total cost = 54 and average variable cost = 24. If the firm's total fixed cost = 268, then how much output is the firm producing? Round to two decimal places.

A firm has the total variable cost function: ??? = 2? + 2?^2 and total fixed...

A firm has the total variable cost function: ??? = 2? + 2?^2 and total fixed cost of $20. Suppose the market demand is: ? ? = 20 − ?. a. What are the firm’s profit maximizing output and price if it is a monopolist? How much is its profit at this output level? How much is consumer and producer surplus? (Hint: use a diagram to illustrate the market), b. Suppose the government implements a tax of $3 tax unit...

A firm incurred a total fixed cost of $400,000 and total variable cost of $600,000 to...

A firm incurred a total fixed cost of $400,000 and total variable cost of $600,000 to produce 50,000 units of output. What are the average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC)?

1) What is the fixed cost, marginal cost, average total cost, average variable cost and average...

1) What is the fixed cost, marginal cost, average total cost, average variable cost and average fixed cost of the following cost function? . 2) What is the level of output that minimizes AVC? (in other words, what is the level of output that corresponds to the minimum of AVC?)

A firm has a fixed cost of $100 and average variable cost of $5xq, where q...

A firm has a fixed cost of $100 and average variable cost of $5xq, where q is the number of units produced. a. Construct a table showing total cost for q from 0 to 10. b. Graph the firms marginal cost and average total cost curves. c. How does marginal cost change with q? What does this suggest about the firm’s production process?

Explain the relationship of varying output with total fixed cost (TFC), total variable cost (TVC), average...

Explain the relationship of varying output with total fixed cost (TFC), total variable cost (TVC), average fixed cost (AFC), average variable cost (AVC) and average total cost (ATC).

Question