Part I. Consider the values in the following table for the Winsome Widget Factor
ID: 1183618 • Letter: P
Question
Part I. Consider the values in the following table for the Winsome Widget Factory.
A.) Fill in the formula for AFC, AVC, ATC, and MC at the top of the column in the gray sectionwithin the table.
B.) Fill in the missing values for TFC, TVC, AFC, AVC, ATC, and MC in the blue sections of the table.
C.) Identify the efficient scale of firm. Explain your reasoning.
Winso
me Widget Factory
Output
Total Fixed Cost
Total Variable Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total Cost
Marginal Cost
0
$600
5
900
10
1,150
15
1,350
20
1,600
25
1,900
30
2,275
35
2,725
40
3,375
45
4,225
50
5,325
Winso
me Widget Factory
Output
Total Fixed Cost
Total Variable Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total Cost
Marginal Cost
0
$600
5
900
10
1,150
15
1,350
20
1,600
25
1,900
30
2,275
35
2,725
40
3,375
45
4,225
50
5,325
Explanation / Answer
Fixed Cost = $ 600 use following formulas : AFC = FC/Q AVC = (TC - FC)/Q ATC = TC/Q MC = TC2 - TC1 /(Q2-Q1) Q = Quantity
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