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Unformatted text preview: Why? At output rates above 21 boats per week? Why? (Draw a graph to illustrate your answer). At Q &lt; 21 MP &gt; AP MP is increasing and brings the AP up. At Q &gt; 21 MP &lt; AP MP is decreasing and brings the AP down. b) Now suppose the price of labor is $400 a week, and the total fixed cost is $10,000 a week. Calculate the firm's total cost, total variable cost, total fixed cost, average total cost, average variable cost, average fixed cost, and marginal cost. See above entries. c) Suppose that total fixed cost increases to $11,000 per week. How will this affect the firm's average total cost, average fixed cost, average variable cost, and marginal cost? Explain thoroughly. ATC increases due to the increasing AFC. No change in AVC. No change in MC....
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09