7. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the table. Quantity Total Cost Marginal Cost (Pairs) (Dollars) (Dollars) 0 1 2 3 4 5 6 60 160 220 270 340 450 630 Fixed Cost (Dollars) Variable Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair)

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter12: The Cost Of Production
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7. Various measures of cost
Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various
production quantities.
Fill in the remaining cells of the table.
Quantity Total Cost Marginal Cost
(Pairs) (Dollars) (Dollars)
0
1
2
3
4
5
6
60
160
220
270
340
450
630
Fixed Cost
(Dollars)
Variable Cost
(Dollars)
Average Variable Cost
(Dollars per pair)
Average Total Cost
(Dollars per pair)
Transcribed Image Text:7. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the table. Quantity Total Cost Marginal Cost (Pairs) (Dollars) (Dollars) 0 1 2 3 4 5 6 60 160 220 270 340 450 630 Fixed Cost (Dollars) Variable Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair)
On the following graph, plot Douglas Fur's average total cost curve (ATC) using the green points (triangle symbol). Next, plot its average variable
cost curve (AVC) using the purple points (diamond symbol). Finally, plot its marginal cost curve (MC) using the orange points (square symbol).
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
COSTS (Dollars per pair)
200
175
150
125
100
75
50
25
0
0
3
QUANTITY OF OUTPUT (Pairs of boots)
1
2
ATC
AVC
MC
Transcribed Image Text:On the following graph, plot Douglas Fur's average total cost curve (ATC) using the green points (triangle symbol). Next, plot its average variable cost curve (AVC) using the purple points (diamond symbol). Finally, plot its marginal cost curve (MC) using the orange points (square symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. COSTS (Dollars per pair) 200 175 150 125 100 75 50 25 0 0 3 QUANTITY OF OUTPUT (Pairs of boots) 1 2 ATC AVC MC
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