1 / 4

3. Value of A? Need to find what?

FC. VC. TC. 60. 30. 90. = 90. 60. 60. 50. =20. 110. #4. 60. 60. 120. 3. Value of A? Need to find what?. Need TC…. Use AFC x 1 and AVC x 1 to get FC and VC = TC. Fill in rest of FC, then identify that at Q3 AVC x Q = VC … So….20 x 3 = VC of 60.

teneil
Download Presentation

3. Value of A? Need to find what?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FC VC TC 60 30 90 = 90 60 60 50 =20 110 #4 60 60 120 3. Value of A? Need to find what? Need TC….. Use AFC x 1 and AVC x 1 to get FC and VC = TC Fill in rest of FC, then identify that at Q3 AVC x Q = VC … So….20 x 3 = VC of 60 4. Total Costs of 3rd unit? Need to find what? 5. Value of B? ……..need to find what? TC at Q2….same process as above

  2. If TC/Q = ATC; ATC x Q = TC……If VC/Q = AVC; AVC x Q = VC ……difference between ATC and AVC = AFC…so that distance x Q = FC 6. Total fixed costs 7. Total variable cost 8. Total Costs A’ A B P0 A Fixed Costs Total Costs P1 D C P3 Variable Costs Q1 Q0

  3. #15…..Average Product….???? • Avg. Product = Q/Input • As MP rises, Avg. Prod rises…. • Ex:

  4. FRQ 15 5 15 15 4 2 15 15 4 15 7 15 15 A. Identify $ value of fixed costs and give one example of fixed cost D. pt. at which DMP(returns) begin. Explain B. VC for 4th unit and give one example of VC =MC is falling through Q3 so MP must be rising. From Q3 to Q4: MC begins to rise which means MP begins to fall = if TC is 30 and FC is 15, then VC = 15 C. MC for 5th unit = change TC / change Q

More Related