1. Complete the following table. Total Variable Fixed Output Cost Cost Cost ATC AVC AFC MC...

  

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1. Complete the following table. Total Variable Fixed Output Cost Cost Cost ATC AVC AFC MC 0 100 0 100 * * * * 1 110 10 100 110 10 100 10 2 22 100 12 3 137 100 4 57 100 20 5 87 100 Use the graph below to answer questions 2 -5 10 10 7 4 2 15 20 MC ATC AVC q (The graph is from http://solr.bccampus.ca:8001/bcc/file/d4468c30-938d-4ba9-acd8-e73cebbec739/1/Principles- of-Microeconomics-1511378196.html#introduction-to-cost-and-industry-structure) 2. At what quantity is average variable cost minimized? 3. At what quantity is average total cost minimized? 4. If average variable cost is $5 when output is 20 units, what is this firm's fixed cost? 5. What is AFC at the shut-down point? Use Figure 2 to answer questions 6 - 7 $ 1,000 Figure 2 6. At what output levels are there the following 1. Decreasing returns to scale? 2. Constant returns to scale? 3,000 Output 3. Increasing returns to scale? 7. Over time, what range of output would you expect firms to produce, assuming any level of output is feasible? 1. Complete the following table. Total Variable Fixed Output Cost Cost Cost ATC AVC AFC MC 0 100 0 100 * * * * 1 110 10 100 110 10 100 10 2 22 100 12 3 137 100 4 57 100 20 5 87 100 Use the graph below to answer questions 2 -5 10 10 7 4 2 15 20 MC ATC AVC q (The graph is from http://solr.bccampus.ca:8001/bcc/file/d4468c30-938d-4ba9-acd8-e73cebbec739/1/Principles- of-Microeconomics-1511378196.html#introduction-to-cost-and-industry-structure) 2. At what quantity is average variable cost minimized? 3. At what quantity is average total cost minimized? 4. If average variable cost is $5 when output is 20 units, what is this firm's fixed cost? 5. What is AFC at the shut-down point? Use Figure 2 to answer questions 6 - 7 $ 1,000 Figure 2 6. At what output levels are there the following 1. Decreasing returns to scale? 2. Constant returns to scale? 3,000 Output 3. Increasing returns to scale? 7. Over time, what range of output would you expect firms to produce, assuming any level of output is feasible?

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1 Completing the Table Output Total Cost Variable Cost Fixed Cost ATC AVC AFC MC 0 100 0 100 x x x x 1 110 10 100 110 10 100 10 2 120 12 100 60 6 50 2 ... View the full answer