Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.
Round your answers to two digits after the decimal.
| Quantity | Marginal cost | Fixed cost | Variable cost | Total cost | Average fixed cost | Average variable cost | Average total cost |
|---|---|---|---|---|---|---|---|
| 0 | --- | --- | --- | --- | |||
| 1 | $50.00$50.00 | ||||||
| 2 | $72.00$72.00 | ||||||
| 3 | $105.00$105.00 | ||||||
| 4 | $30.00$30.00 | $380.00$380.00 |
What is the total cost when producing zero units?
total cost: $
What is the marginal cost for the first unit?
marginal cost: $
What is the average total cost when producing three units?
average total cost: $
What is the average variable cost when producing four units?
average variable cost: $
In: Economics
Given the following total cost schedule of a firm, derive the total fixed cost and total variable cost schedules of the firm, and from them derive the average fixed cost, average variable cost, average total cost, and marginal cost schedules of the firm.
Q1. Answer question above using the table below:
Quantity TC($) TFC TVC AFC AVC ATC MC
| 0 | ||||||
| 1 | ||||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
| 5 |
Q 0 1 2 3 4 5
TC $30 50 60 81 118 180
In: Economics
In a cost-plus-incentive-fee contract, a buyer and a seller agreed on a target cost of $7,000, and a fixed fee of $1,000. Any cost overruns or underruns will be shared between the buyer and the seller by 50% and 50%, respectively. When the actual cost of $8,000 is incurred, how much will the supplier get paid in total?
In: Operations Management
In a cost-plus-incentive-fee contract, a buyer and a seller agreed on a target cost of $7,000, and a fixed fee of $1,000. Any cost overruns or underruns will be shared between the buyer and the seller by 50% and 50%, respectively. When the actual cost of $8,000 is incurred, how much will the supplier get paid in total?
In: Operations Management
Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.
Round your answers to two digits after the decimal.
| Quantity | Marginal cost | Fixed cost | Variable cost | Total cost | Average fixed cost | Average variable cost | Average total cost |
|---|---|---|---|---|---|---|---|
| 0 | --- | --- | --- | --- | |||
| 1 | $45.00 | ||||||
| 2 | $64.00 | ||||||
| 3 | $85.00 | ||||||
| 4 | $20.00 | $400.00 |
What is the total cost when producing zero units?
total cost: $
What is the marginal cost for the first unit?
marginal cost: $
What is the average total cost when producing three units?
average total cost: $
What is the average variable cost when producing four units?
average variable cost: $
In: Economics
Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.
Round your answers to two digits after the decimal.
| Quantity | Marginal cost | Fixed cost | Variable cost | Total cost | Average fixed cost | Average variable cost | Average total cost |
|---|---|---|---|---|---|---|---|
| 0 | --- | --- | --- | --- | |||
| 1 | $50.00 | ||||||
| 2 | $64.00 | ||||||
| 3 | $105.00 | ||||||
| 4 | $30.00 | $360.00 |
What is the total cost when producing zero units?
total cost: $
What is the marginal cost for the first unit?
marginal cost: $
What is the average total cost when producing three units?
average total cost: $
What is the average variable cost when producing four units?
average variable cost: $
In: Economics
True and False
1) Average total cost and average variable cost are minimized at the same level of output.
2) When marginal cost is between average variable cost and average total cost, marginal cost is increasing.
3) Average total cost of producing 100 units of output is $5. If the marginal cost of producing the 101st unit is $4, then average total cost of 101 units is less than $5.
4) Average variable costs fall continuously as quantity of output rises.
In: Economics
A firm's total fixed cost (TFC) is $1,000 and unit variable cost (UVC) is $5. If market price of the product (P) is $10, what is the break-even quantity of sales?
Break-even quantity = TFC / (P - UVC) = __ units
In: Economics
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.
In: Economics
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?
In: Economics