a. Fill in the blanks in the table below. Units of Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 100 1 125 2 145 3 157 4 177 5 202 6 236 7 270 8 326 9 398 10 490 b. Draw a graph that shows marginal cost, average variable cost, and average total cost, with cost on the vertical axis and quantity on the horizontal axis. Show
a. The missing values from the table are given below:
b. The marginal cost, the average variable cost, and the average total cost curves are as follows: If you're seeing this message, it means we're having trouble loading external resources on our website. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. Jared runs a personal training studio and earned $5,000 last month. His fixed costs are $4,000 and variable costs are $3,500. Should Jared shut down his business immediately? A) Yes, because he is clearly losing money B) No, because he is making money C) No, because $5,000 covers his fixed costs D) Yes, because $5,000 cannot cover his fixed costs E) No, because $5,000 covers his variable costs JC pizzeria has a year remaining on an unbreakable lease on its building, requiring a payment of $20,000 a year. If JC operates over the next year, it estimates that its revenues will be $200,000 and that its expenses, in addition to the lease, will be $190,000. Which of the following statements is true? Shelby is an entrepreneur who has decided to open a small advertising firm. She rents office space at a cost of $25,000 per year, she has employed an assistant at a salary of $30,000 per year, and she incurs annual utility and office supply expenses of
$20,000. Her best alternative is to work elsewhere and to earn a salary of $50,000 per year. How much annual revenue must her firm receive so that Shelby earns zero economic profit? Students also viewedIs total fixed cost always horizontal?Total Fixed Cost and Total Variable Cost
The graph of total fixed cost is simply a horizontal line since total fixed cost is constant and not dependent on output quantity.
What is total fixed costs?Total fixed costs are the sum of all consistent, non-variable expenses a company must pay. For example, suppose a company leases office space for $10,000 per month, rents machinery for $5,000 per month, and has a $1,000 monthly utility bill. In this case, the company's total fixed costs would be $16,000.
What is the fixed cost of the firm quizlet?What are fixed costs? Fixed costs are costs that does not depend on the firms' level of output. -These costs are incurred even if the firm is producing nothing.
Which of the following is true of a firm's average total cost?In the short run, which of the following is true of a firm's average total cost of production? It is equal to marginal cost plus average variable cost.
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