Question

Behind the Supply Curve: Inputs and Costs
Work It Out: Question 3 of 5

Behind the Supply Curve: Inputs and Costs Work It Out: Question 3 of 5 Quantity of cars Total Cost $500,000 0 540,000 The accompanying table shows a car manufacturer's total cost of producing cars 560,000 570,000 4 590,000 Calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC) for a quantity of 3 cars and a quantity of 8 cars 620,000 660,000 720,000 Round your answer to the nearest whole dollar. 800.000 920,000 10 1,100,00 AVC for producing 3 cars: $ ATC for producing 3 cars: $ AFC for producing 3 cars: $ AVC for producing 8 cars: $ ATC for producing 8 cars: $ AFC for producing 8 cars: $

Answer 1

Write the formula used for calculation as follows: Variable cost = Total cost - Fixed cost Fixed cost Average fixed cost = Quantity Variable cost Average variable cost = Quantity Average total cost= Total cost Quantity Represent the formula excel sheet as follows: 20 LB C D E F G 1 Quantity of cars Total Cost Fixed Cost variable cost AFC AVC ATC 500000 5000000 31 540000 500000 =B3-C3 =C3/A3 =D3/A3 =B3/A3 560000 500000 -B4-C4 =C4/A4 =D4/A4 -B4/A4 5 3 570000 500000 =B5-C5 =C5/A5 D5/A5 B5/A5 64 590000 500000 =B6-C6 =C6/A6 =D6/A6 =B6/A6 75 620000 500000 =B7-C7 =C7/A7 D7/A7 =B7/A7 86 1660000 500000 =C8/A8 =D8/A8 =B8/A8 9.7 720000 500000 =B9-C9 =C9/A9 =D9/A9 =B9/A9 10 8 800000 500000 =B10-C10 =C10/A10 =D10/A10 =B10/A10 920000 500000 =B11-C11 =C11/A11 =D11/A11 =B11/A11 12 10 110000 500000 =B12-C12 =C12/A12 =D12/A12 =B12/A12 119 Represent the table showing the calculations as follows:

F AVC G ATC 0 B C D E 1 Quantity of cars Total Cost Fixed Cost variable cost AFC 0 500000 500000 1 540000 500000 40000 500000 2 560000 500000 60000 250000 3 570000 500000 70000 166667 41590000 500000 90000 125000 5 620000 500000 120000 100000 660000 500000 160000 83333 7 720000 500000 22000071429 8 800000 500000 30000062500 9 920000 500000 420000 55556 10 110000 500000 -390000 50000 40000 540000 30000 280000 23333 190000 22500 147500 24000 124000 26667 110000 31429 102857 37500 100000 46667 102222 -39000 11000 6 The results are as follows: AVC for producing 3 cars is $2 ATC for producing 3 cars is $190,000 AFC for producing 3 cars is $166,667. AVC for producing 8 cars is $37,500 ATC for producing 8 cars is $100,000 AFC for producing 8 cars is