Question

In the graph, Sue's AFC curve The AVC Ourveis The ATC curve The MCO Ses Surfboards worn 500 a work its total cost is $1.000 a work. The table shows the sol product schedule Labor Output surtoards per Costas por sur 50 70 160 When output is 160 surfboards a week, uverage feed cost is $.surfboard and average variable cost is $. surfboard. >>> Answer to 2 decimal places When output is 160 surfboards a week, werage total cost is $ surcoard and when output increases from 120 to 160 surfboards a week marginal cost $a surfboard >>> Answer to 2 decimal places 10 30 12010200 Outube Emer your answer in each of the answer boxes 3 4 5 6 7 8 E W R Т. Y O U

Answer 1

Grinen, $ 500 Total Fixed cost (TFC) = $1000 wage (w) is, # Average Fixed cost of producing 160 Surfboards a week AFC. IFC [ax output AFC 1000 160 AFC - 6.25

اور Total variable cost of producing 160 surfboard a nweek. TVC = wage x/Number of Labor employed to produce 160 Surfboards per week LTVC = Soo x 4 TVC = 2000

Average variable cost of producing 160 surfboards per week is, TVC AVC - Q - AVC - 2000 160 = AVC = 12.5 So correct answer is When output is 160 surfboards auwk, awrege fixed cost is $[6.25 a surfboard and Querez vouable cost is $11205 a surfboard

# Average total cost of producing 160 surfboards a week is, ATC = AFC + AVC = ATC = 6.25 + 12.5 = ATC = 18.75

Total variable, cost of producing 120 Surfboards a week is, TVC wage & Number, of labor employed to produle 120 Swiftcody a week. -> TVC 500 x 3 → TVC = 1500 Total cost of producing 120 Surfboards a week is, TC' = TFC + VC => TC = 1000 + 1500 = TG' asoo Total cost of producing 160 sweefboards a week is, TC = TFC + TVC SIC 1000 + 2000 BTC = 3000

Marginal cost when output increases from 120 to 160 is, Mc ATC Mc = TC-TC 160-120 mc = 3000 - 2500 40 = mc Soo 40 smo = mc= 12.5 So correct answer is, when output is 160 surfboards a week aurrage total cost is $ (18.75 a surfboard and when output increases from 120 to 160_Swy boards a student curek_marginal cost is $112.5' a swetboard -