Answer the following: ○ a. If TVC 5 $80 and AVC 5 4, then what does quantity (Q) equal? ■ ○ b. If total cost is $40 when Q 5 2 and total cost is $45 when Q 5 3, then what does marginal cost equal? ■ ○ c. What does average fixed cost equal at Q 5 2 if totalvariable cost is $15 at Q 5 2? ■ ○ d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
Answer the following: ○ a. If TVC 5 $80 and AVC 5 4, then what does quantity (Q) equal? ■ ○ b. If total cost is $40 when Q 5 2 and total cost is $45 when Q 5 3, then what does marginal cost equal? ■ ○ c. What does average fixed cost equal at Q 5 2 if totalvariable cost is $15 at Q 5 2? ■ ○ d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section: Chapter Questions
Problem 9WNG
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Answer the following:
○ a. If TVC 5 $80 and AVC 5 4, then what does quantity (Q) equal?
■
○ b. If total cost is $40 when Q 5 2 and total cost is $45 when Q 5 3, then what does marginal cost equal?
■
○ c. What does average fixed cost equal at Q 5 2 if totalvariable cost is $15 at Q 5 2?
■
○ d. Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as quantity of output increases?
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