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BEHIND THE SUPPLY CURVE: INPUTS AND COSTS The accompanying table shows a boat manufacturer's total cost of producing boats.

BEHIND THE SUPPLY CURVE: INPUTS AND COSTS

The accompanying table shows a boat manufacturer’s total cost of producing boats.

Quantity of Boats Total Cost
0 $450,000
1 $490,000
2 $510,000
3 $520,000
4 $540,000
5 $570,00
6 $610,000
7 $670,000
8 $750,000
9 $870,000


a.What is this manufacturer’s fixed cost?
b.For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC)
Qty of boats Total Cost Variable Costs Average Variable Costs Average Total Costs Average Fixed Costs
0 $450,000 - - - -
1 $490,000
2 $510,000
3 $520,000
4 $540,000
5 $570,000
6 $610,000
7 $670,000
8 $750,000
9 $870,000

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Dear Student Please find... View the full answer

Economics-8186839.xls

Q TC
0
1
2
3
4
5
6
7
8
9 450000
490000
510000
520000
540000
570000
610000
670000
750000
870000 TFC
TVC
AFC
AVC
MC
450000
0450000
40000
450000
40000
40000
450000
60000
225000
30000
20000
450000...

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