microeconomics book solution 12

# 12 in your economics class each homework problem set

• Notes
• 14
• 75% (4) 3 out of 4 people found this document helpful

This preview shows 11 out of 13 pages.

Subscribe to view the full document.

Solution which is greater than 88. And if your 10th grade is 86, then your overall grade is + = 79.2 + 8.6 = 87.8 which is less than 88. 13. Don owns a small concrete-mixing company. His fixed cost is the cost of the concrete- batching machinery and his mixer trucks. His variable cost is the cost of the sand, gravel, and other inputs for producing concrete; the gas and maintenance for the machinery and trucks; and his workers. He is trying to decide how many mixer trucks to purchase. He has estimated the costs shown in the accompanying table based on estimates of the number of orders his company will receive per week. a. For each level of fixed cost, calculate Don’s total cost for producing 20, 40, and 60 orders per week. b. If Don is producing 20 orders per week, how many trucks should he purchase and what will his average total cost be? Answer the same questions for 40 and 60 orders per week. 13. a. The answers are given in the accompanying table. b. Don should choose the number of trucks that minimizes average total cost for each level of output. Given this, Don should buy two trucks if he is producing 20 orders per week. His average total cost per order will be \$400. He should buy three trucks if he is producing 40 orders per week. His average total cost per order will then be \$270. He should buy four trucks if he is producing 60 orders per week.
You've reached the end of this preview.
• Spring '10
• BRIANALLENHUNT
• average total cost

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern