What are the total variable costs of producing]300LCD screens per day? The diagram to the right displays short-run cost curves fora facility that produces liquid crystal display (LCD) screens for cell phones.a. What are the daily total fixed costs of producing 300 LCD screens? $999 (Round your answer to thenearest penny.)b. What are the total variable costs of producing 300 LCD screens per day? $the nearest penny.)(Round your answer toCosts (dollars per LCD screen)12.00-11.00-10.00-9.00-8.00-7.00-6.00-5.004.003.00-2.00-5.004.253.331.00-0.00+0200:300+AVC400600200800Output (LCD screens per day)AFC1000

Fixed cost is the cost that remains same at all levels of output. Variable cost refers to the cost…

ort-run cost curves for display (LCD) screens for cell phones. s of producing 300 LCD screens? $999 (Round your answer to the of producing 300 LCD screens per day? $ (Round your answer to C... Costs (dollars per LCD screen) 12.00 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00 5.00 4.25 4.00-.. 3.33 ....... 3.00- 2.00- 1.00 0.00+ 0 200 300 :200:50 AVC 400 600 800 200 Output (LCD screens per day) AFC 1000

ort-run cost curves for display (LCD) screens for cell phones. s of producing 300 LCD screens? $999 (Round your answer to the of producing 300 LCD screens per day? $ (Round your answer to C... Costs (dollars per LCD screen) 12.00 11.00- 10.00- 9.00- 8.00- 7.00- 6.00- 5.00 5.00 4.25 4.00-.. 3.33 ....... 3.00- 2.00- 1.00 0.00+ 0 200 300 :200:50 AVC 400 600 800 200 Output (LCD screens per day) AFC 1000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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6 5 nts eBook Print References Mc Graw Hill Output 0 1 2 3 4 5 6 7 8 9 $ Total Cost $2,500 3,410 4,040 4,480 4,900 5,220 5,540 6,310 7,320 9,710 units variabl Cost $ 0 b. What is the value of total fixed cost? units 910 1540 1980 2400 2720 3040 3810 4820 7210 Marginal Cost 1 c. What is the most productive level of output? $ 910 630 440 420 320 320 770 1010 2390 d. At what output is economic capacity? Output: e. If TFC doubled, what is the marginal cost of the 7th unit? Marginal cost: $ Average Total Cost 1 $ 3410 2020 1493.33 H a 1225 1044 923.33 901.42 915 1078.89 a Average Variable Cost D $ 1 625 500 416.67 35713 312.5 27778
a. Calculate marginal cost using the formula given in the chapter: ATotal cost/AQuantity. Quantity Variable cost ($) Total cost ($) Marginal cost ($) 0 0 100 1 60 160 2 110 210 100 3 180 280 100 4 270 370 100 5 400 500 100 b. Calculate AVariable cost/AQuantity. Quantity Variable cost ($) AVariable cost Total cost ($) ($)/ AQuantity 0 0 100 1 60 160 100 2 110 210 100 3 180 280 100 4 270 370 100 5 400 500 100