Refer to Figure 11-9 above to solve the following problems
a. Calculate the fixed cost of production.
b. Calculate the average total cost of production when the firm produces 20 units of output.
c. Calculate the average variable cost of production when the firm produces 20 units of output.
d. Calculate the average fixed cost of production when the firm produces 20 units of output.
e. Calculate the average fixed cost of production when the firm produces 15 units of output.
f. If the firm increases output from 15 to 20 units, what is the marginal cost of output?
a. $100
b. $22.5
c. $17.5
d. $5
e. $6.67
f. $14
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Which of the following grew rapidly after the passage of the Medicare and Medicaid programs in the mid-1960s?
a. the share of healthcare expenditures financed directly by the consumer b. the share of healthcare expenditures financed by third parties c. the prices of healthcare relative to the prices of other goods and services d. both b and c
The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is
A. Aid to Families with Dependent Children (AFDC). B. a negative income tax (NIT). C. food stamps. D. Medicaid.
Suppose that the percentage change in supply is -50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.
The ________ at which a firm's long run average cost curve is at its minimum is called the minimum efficient scale.
A. average plant size B. largest industry size C. largest plant size D. smallest plant size