Bookd Exce FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVDEW VW L16 Units of M.P

Question

Bookd Exce FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVDEW VW L16 Units of M.P F.C 220 220 220 100 220 110 320.00 210.00 100 100.00 250 125.00 10 136.6 A.P # T.P/units of variable unit M.P Change in T.P/Change in units T.F.C 220 T.v.c 100-units .C.T.F.C T.V. 73.33 173.33 560 140.00 700 140 138.33 945 135.00 1050 131.25 1146 127.33 234 123.40 314 119.45 1384 115.33 444 111.08 1494 106.71 1534 102.27 16 1564 97.75 1584 93.18 1594 88.56 36.67 136.6 143131.43 .T.C T.C/ units M.C Change in T.C/Change in units 127 24.44 122.00 120 220 220 1100 18.33 118.33 116.92 15.71 115.71 4.67114.67 113 112.94 220 1700 18 12.22 112.2

Explanation / Answer

D. When AP is maximum at 4 Units of variable input AVC(ATC- AFC) = 100.

E. the MC will keep increasing because of the law of deminishing returns.

1. When the MC increases more than AVC the comapny moves to shutdown point.

2. Mp wil decrease.

3. As Mp decrease Ap also decrease.

F. TFC always remains same no matter if output increases or decreases. TFC are costs like land rent, which is not directly related with quantity of output.

G. 1. If Mp increases AFC decreases.

2. If MC decreases AFC increases.

3. If MP decreases AFC increases.

4. If MC increases AFC decreases.

5. If AVC increases AFC decreases.

H. AS long as output increases fixed cost decreases.

J. 1. As Mp increases ATC also increases.

2. As MC decreases ATC increases.

3. As Ap increases ATC increases.

4. As AVC decreases ATC also decreases.

K.

  

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