Suppose you are the cost accountant of a major producer of funnel cakes. a) Fill in the table so that you can inform the company's CEO about the cost structure of the firm. Exercise 2 Output Total q Fixed Cost TFC 50 50 50 50 50 50 50 50 50 50 50 50 0 1 2 3 4 5 6 7 8 9 10 11 Total Variable Cost TVC(q) 0 10 17.5 22.5 25 30 37.5 47.5 60 75 100 150 Short run Average Total Fixed Cost Cost STC(q) AFC(q) Average Short run Variable Average Cost Cost AVC(q) SAC(q) Short run Marginal Cost SMC(q) b) On a graph, plot STC(q), TVC(q) and TFC. c) On a separate graph plot SAC(q), AFC(q), AVC (q) and SMC(q) curves. Briefly discuss the relationships between SMC(q) with SAC(q) and AVC(q).

Suppose you are the cost accountant of a major producer of funnel cakes. a) Fill in the table so that you can inform the company's CEO about the cost structure of the firm. Exercise 2 Output Total q Fixed Cost TFC 50 50 50 50 50 50 50 50 50 50 50 50 0 1 2 3 4 5 6 7 8 9 10 11 Total Variable Cost TVC(q) 0 10 17.5 22.5 25 30 37.5 47.5 60 75 100 150 Short run Average Total Fixed Cost Cost STC(q) AFC(q) Average Short run Variable Average Cost Cost AVC(q) SAC(q) Short run Marginal Cost SMC(q) b) On a graph, plot STC(q), TVC(q) and TFC. c) On a separate graph plot SAC(q), AFC(q), AVC (q) and SMC(q) curves. Briefly discuss the relationships between SMC(q) with SAC(q) and AVC(q).

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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