Average fixed cost of producing

Assignment Help Business Economics

Reference no: EM136472

Q. Use the following table to answer questions a-c.

Output (Q):
0 1 2 3 4 5 6
Total Cost(TC):
$36 $45 $52 $61 $74 $91 $110

a. What is the average fixed cost of producing 4 units of output?
b. What is the marginal cost of producing the third unit of output?
c. At what level of output does the firm encounter diminishing marginal returns? How do you know?

Reference no: EM136472

Questions Cloud

Japanese inflation rate : Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.

How much will be in the sample after 10 years : An assured drug that is used to control high blood pressure stimulates K+ excretion in the kidney such that plasma [K+] decreases from a normal value of 5 mM to 2.5 mM. Intracellular [K+] is largely unaffected. What effect this drug will have on the ..

Defend the policy of public works : Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut.

Determine the percentage of offspring displaying each trait : Determine the percentage of offspring displaying each trait. If a single, diploid G2 nucleus in an ascus contains 400 nanograms (ng) of DNA, after that a single ascospore nucleus of this species should contain how much DNA (ng), carried on how many c..

Average fixed cost of producing : What is the average fixed cost of producing 4 units of output and What is the marginal cost of producing the third unit of output.

Full employment and full production : Suppose that the market for wheat is characterized by the following demand and supply relationships.

Which term describes tonicity of the external solution : Which term describes tonicity of the external solution. Were latitude the only control of temperature, the isotherms would run straight across the map from east to west. Describe one region of the world where this hypothetical isotherm pattern is rea..

Citizens bank in nominal terms : Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.

Standard deviation for the forecasted federal funds : Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.

User Account

All Pages