Question

MURCI13) 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Quantity (Pairs) Total Cost (Dollars) Marginal Cost (Dollars) Average Variable Cost Fixed Cost (Dollars) Variable Cost (Dollars) Average Total Cost (Dollars per pair) 155 U W NO 220 i nts tannlemel e Rotal.cosATCL h On the following araph plot Douglas Budisaveta Type here to search

Answer 1

Answer:

Marginal Cost(MC) = Change in TC / Change in Q

Variable Cost(VC) = TC – FC

Average Variable Cost (AVC) = VC / Q

Average Total Cost(ATC) = TC/Q

Quantity	Total Cost($) TC	Marginal Cost($) MC	Fixed Cost($) FC	Variable Cost($) VC	Average Variable Cost($) AVC	Average Total Cost($) ATC
0	60	-	60	0	-
1	155	95	60	95	95	155
2	220	65	60	160	80	110
3	255	35	60	195	65	85
4	300	45	60	240	60	75
5	350	50	60	290	58	70
6	450	100	60	390	65	75

For Calculation lets take first row:

Quantity = 2;

TC = 220, MC = 65, FC = 60;

VC = TC-FC = 220-60 = 160

AVC = VC/Q = 160/2 = 80

ATC = TC/Q = 220/2 = 110

Similarly you can solve rest

Graph:

COSTS (Dollars per pair) QUANTITY (Pairs of boots)