Week 6 - Ass D

# Week 6 - Ass D - average costs start going up. 1. According...

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Output Fixed Costs Short- run Variable Cost \$ Short- run Total Cost \$ Short- run Average Total Cost \$ Short- run Average Fixed Cost \$ Short- run Average Variable Cost \$ Short-run Marginal Cost \$ O FC VC TC = FC + VC TC/O FC/O VC/O MC = (TC2-TC1) / (Q2-Q1) 0 10 0 10.00 0.00 0.00 0.00 0.00 1 10 24 34.00 34.00 10.00 24.00 24.00 2 10 39 49.00 24.50 5.00 19.50 15.00 3 10 52 62.00 20.67 3.33 17.33 13.00 4 10 63 73.00 18.25 2.50 15.75 11.00 5 10 72 82.00 16.40 2.00 14.40 9.00 6 10 82 92.00 15.33 1.67 13.67 10.00 7 10 94 104.00 14.86 1.43 13.43 12.00 8 10 108 118.00 14.75 1.25 13.50 14.00 9 10 124 134.00 14.89 1.11 13.78 16.00 10 10 142 152.00 15.20 1.00 14.20 18.00 11 10 162 172.00 15.64 0.91 14.73 20.00 Total Cost increases as no of unit increases. Average Total Cost declining until no. of output reaches eight. At nine no. of output the average costs start going up. Average Fixed Cost decreases as no of unit increases. Average Variable Cost declining until no. of output reaches seven. At eight no. of output the average costs start going up. Marginal Cost declining until no. of output reaches five. At six no. of output the

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Unformatted text preview: average costs start going up. 1. According to table above, the market supply of bread is given by what quantities corresponding to \$5, 4,3,2,1? a. 102,84,66,48,30 2. Refer to the table above. If Orobran decreased its bakers, salaries, it would d. Increase its supply and the market supply would rise . 3. Refer to the table above, assuming………… 1 Theory and Analysis of Supply & Demand a. \$49 e. In the table above when total output is 8 units, the average variable cost is f. In the table above, if for an output of 11 units the average variable cost is \$52 the marginal cost of the eleventh unit is \$ 102 d. the total variable cost is \$576 Total Variable Cost / Total Output = Variable Cost 6. d. 4; 5 7. b. \$40; \$5 8 e. eighth unit produced 9. e. 8 MC8 = \$80 Total FC8 = \$40 2...
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## This note was uploaded on 06/14/2008 for the course ECON MBA501 taught by Professor Watson during the Spring '08 term at Uni. Westminster.

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Week 6 - Ass D - average costs start going up. 1. According...

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