Question

graph the short-run average cost curves.

explain how you got each. (total revenue, Marg rev, MPL, TFC, TVC, TC, AFC, AVC, ATC)

bakers (L) cakes (0) Total Revenue Marg Rev MPL TFC TVC T C AFC AVC ATC MC P(cake) Fixed Fixed cost wage $6 each capital $200 $50 per baker 20 38 56 73 104 133 158 191 219 250 277 296

Answer 1

L	Q	TR($) = $6*Q	MR($)=∆TR/∆Q	MPL=∆Q/∆L	TFC($)	TVC($)=$50*L	TC($)=TFC+TVC	AFC($)=TFC/Q	AVC($)=TVC/Q	ATC($)=TC/Q	MC($)=∆TC/∆Q
1	20	120.00	6	20	200	50	250	10.00	2.50	12.50	2.50
2	38	228.00	6	18.00	200	100	300	5.26	2.63	7.89	2.78
3	56	336.00	6	18.00	200	150	350	3.57	2.68	6.25	2.78
4	73	438.00	6	17.00	200	200	400	2.74	2.74	5.48	2.94
6	104	624.00	6	15.50	200	300	500	1.92	2.88	4.81	3.23
8	133	798.00	6	14.50	200	400	600	1.50	3.01	4.51	3.45
10	158	948.00	6	12.50	200	500	700	1.27	3.16	4.43	4.00
13	191	1146.00	6	11.00	200	650	850	1.05	3.40	4.45	4.55
16	219	1314.00	6	9.33	200	800	1000	0.91	3.65	4.57	5.36
20	250	1500.00	6	7.75	200	1000	1200	0.80	4.00	4.80	6.45
25	277	1662.00	6	5.40	200	1250	1450	0.72	4.51	5.23	9.26
30	296	1776.00	6	3.80	200	1500	1700	0.68	5.07	5.74	13.16