A. short-run costs of a production schedule. calculate

  

A. Short-Run Costs of A Production Schedule.

Calculate Table 

  

OUTPUT

TFC

TVC

TC

MC

AFC

AVC

ATC

 

0

200

0

 

1

200

175

 

2

200

300

 

3

200

500

 

4

200

800

 

5

200

1,200

 

6

200

1,700

 

7

200

2,300

Determine the following:

1. What is the comportment of the TC as Output increases? Answer the same 

question in mind to the TFC. Why the dissimilarity?

2. What do the AFC, AVC and ATC flexions do as minds increases in output? Is

there a dissimilarity in the AFC? Why?

3. What does the MC flexion do delay mind to Output? Why? What is the 

relationship betwixt the MC flexion and ATC, AVC flexions? Would this

be essential knowledge for the Producer? 

B. Short-Run Consume of Production Register – Product X

(Perfect Competition)

  

OUTPUT

TFC

TVC

TC

MC

AVC

ATC

 

0

200

0

 

1

200

175

 

2

200

300

 

3

200

500

 

4

200

800

 

5

200

1,200

 

6

200

1,700

 

7

200

2,300

(A) Assume expense = $250; apportion whole avail/loss using TR – TC arrangement.

  

OUTPUT

TR

TC

PROFIT/LOSS

 

0

 

1

 

2

 

3

 

4

 

5

 

6

 

7

(B) Apportion Output using the formula: Avail = (Price – ATC) x Q

Hint: erect a new consideration to experience new output at the incongruous levels of ATC values (in leading consideration) and avail in consideration 2 when expense is $250.

(C) Apportion Output using the formula: Avail = (Price – ATC) x Q

Hint: erect a new consideration to experience new output at the incongruous levels of ATC values (in leading consideration) when expense is $180. Also experience new avail/loss values leading.

(D) Apportion Output using the formula: Avail = (Price – ATC) x Q

Hint: erect a new consideration to experience new output at the incongruous levels of ATC values (in leading consideration) when expense is $140. Also experience new avail/loss values leading.

(E) Use expense register to detail Q‘s. (Repeat the manner for expenses $350, $450,, $550, and $650 antecedently presenting all the output computed at incongruous expense levels in the consideration under.

(F) What does short-run consume example narrate you encircling the comportment of the determined in mind 

to MC and Price?

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