Question

Use the following table to answer questions 6-9: Number of VC MC AVC Earrings FCTC AFC ATC 0 B 2 30 А 20 D 180 6) What should the value for "A" be? a) 15 b) 20 c) 25 d) 30 e) 35 7) What should the value for "B" be? a) 50 b) 60 c) 70 d) 80 e) None of the above. 8) What should the value for "C" be? a) 36.67 b) 40 c) 43.33 d) 45 e) None of the above. 9) What should the value for "D" be? a) 23 b) 24 c) 25 d) 26

6-9 please

Answer 1

Here AFC is given as 30.

AFC is FC/Q.

30= FC/2 or FC = 60. It will be the same throughout. Hence B=60.

For Q=3, TC =110. VC=110-60 = 50 since TC=VC+FC.

For Q=4, AVC =20. AVC = VC/Q

VC= 20*4 =80.

Thereforw, marginal cost for the fourth unit will be, 80-50 = 30. A=30.

For Q=4, TC = VC+FC = 80+ 60 = 140.

ATC for Q=4 will be 140/4 = 35.

C=35

For Q=5, TC = 180.

TC=VC+FC which implies VC = TC-FC = 180-60 = 120.

AVC for Q= 5 will be 120/5 = 24 =D

6) d) 30

7 b) 60

8e) None of the above.

9b) 24.