Winsome Widget Factory Output 0 5 10 15 20 25 30 35 40 45 50 Total Fixed Cost $6

Question

Winsome Widget Factory
Output

0
5
10
15
20
25
30
35
40
45
50

Total Fixed Cost
$600
900
1,150
1,350
1,600
1,900
2,275
2,725
3,375
4,225
5,325

Total Variable Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total Cost
Marginal Cost



Consider the values in the following table for the Winsome Widget Factory.
A. Fill in the formula for AFC, AVC, ATC, and MC
B. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, and MC

C. Identify the efficient scale of firm. Explain your reasoning.
Thank you

Explanation / Answer

average fixed cost find the average of all the fixed costs average variable cost if data given about variable costs it can be found out just like AFC ATC add Total fixed cost and total variable cost to get total cost..avg all those costs to get Avg Total cost marginal cost cost of producing 1 extra product..so (total cost - previous total cost) /(output - previous output) ....do this thing for the whole total cost table effecient scale of firm occurs when total cost is minimum in long run i can only give u this explanation. i feel more data is needed if it isnt required then sorry i cannot help

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