2. Every fourth of July, A Stitch in Time prints T-shirts for visitors to the sm
ID: 2495004 • Letter: 2
Question
2. Every fourth of July, A Stitch in Time prints T-shirts for visitors to the small town of Liberty. This production process involves both fixed and variable costs. The fixed cost of printing these shirts is $10. The following table describes some of these costs. PLEASE SHOW WORK
Output
Total Variable Cost
Total
Cost
Average Variable
Cost
Average
Total Cost
Marginal
Cost
0
0
10.00
1
8.00
2
12.00
3
28.00
4
4.00
5
0
6.40
6
10.00
7
54.00
Output
Total Variable Cost
Total
Cost
Average Variable
Cost
Average
Total Cost
Marginal
Cost
0
0
10.00
1
8.00
2
12.00
3
28.00
4
4.00
5
0
6.40
6
10.00
7
54.00
Explanation / Answer
Please feel free to ask for any clarification.
Q TVC FC TC AVC ATC MC 0 0 10 10 1 8 10 18 8.0 18.0 8 2 14 10 24 7.0 12.0 6 3 18 10 28 6.0 9.3 4 4 22 10 32 5.5 8.0 4 5 32 10 42 6.4 8.4 10 6 42 10 52 7.0 8.7 10 7 54 10 64 7.7 9.1 12 ATC = TC/Q or TC = ATC*Q AVC=VC/Q or VC=TC*Q MC= TCn - TCn-1 ot TCn = MC+TCn-1 TC = FC+VC or VC = TC-FC and FC=TC at Q=0Related Questions
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