a) Show AFC , ATC , AVC , and MC in a table. b) Graph the AFC , ATC , AVC, and M
ID: 1177505 • Letter: A
Question
a) Show AFC, ATC, AVC, and MC in a table.
b) Graph the AFC , ATC , AVC, and MC curves.
Instructions: On the graph above, Before plotting any points, be sure to round your calculations to the nearest whole number. For each curve, click the Plotter tool and drag the first point you want to plot onto the grid. Continue clicking and dragging the plotter tool until you have identified all of the necessary points for each of the curves. To remove a point from the graph, drag the point off an edge of the graph.
c) Explain the relationship between the MC curve and the AVC and ATC curves.
Instructions: Select the correct answer from the list given below.
A. The marginal cost curve intersects the AVC curve at the minimum of the AVC curve. This is to the left of the intersection of the MC curve and the ATC curve, which is at the minimum of the ATC curve.
B. The marginal cost curve intersects the AVC curve at the minimum of the AVC curve. This is to the right of the intersection of the MC curve and the ATC curve, which is at the minimum of the MC curve.
C. The AVC and ATC curves intersect the MC curve at the minimum of the MC curve.
D. The marginal cost curve intersects the AVC curve to the right of the minimum of the AVC curve. It also intersects the ATC curve to right of the minimum of the ATC curve.
(Click to select)CBDA
d) Say fixed costs dropped to $50. Which curves shifted? Why?
Average fixed cost: (Click to select)Not shiftShift.
Average total cost: (Click to select)ShiftNot shift.
Average variable cost: (Click to select)Not shiftShift.
Explanation / Answer
1)output 1 2 3 4 5 6 7 8 9
fixed cost 100 100 100 100 100 100 100 100 100
variable cost 35 75 110 140 175 215 260 315 390
avg fixed cost 100 50 33.34 25 20 16.67 14.28 12.5 11.11
avg total cost 135 175 210 240 275 315 360 415 490
avg variable cost 35 37.5 36.67 35 35 35.83 37.14 39.37 43.33
marginal cost 0 40 35 30 35 40 45 55 75
b)plot the graph using the values
c) A is the correct answer
d)Average fixed cost: shift
Average total cost:shift
Average marginal cost: no shift
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