Question

4. Various measures of cost Douglas Fur is a small manufacturer of fake fur boots in Houston. 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) 120 Marginal Cost (Dollars) Fixed Cost (Dollars) Variable Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) 120 120 200 120 On the following graph, plot Douglas Furs average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like the connected. Line segments will connect the points automatically earch

Answer 1

Table is correctly filled.

Total fixed cost is the total cost of firm at zero level of output.

Total variable cost = Total Cost - Total fixed cost

Average variable cost = Total variable cost / Quantity

Average total cost = Total cost / Quantity

COSTS (Dollars per pair QUANTITY Pairs of boots)