# Answer the next question(s) on the basis of the following cost data: |Output|Total Cost $24 ...

## Question:

Answer the next question(s) on the basis of the following cost data:

Output | Total Cost $24 |

0 | $24 |

1 | 33 |

2 | 41 |

3 | 48 |

4 | 54 |

5 | 61 |

6 | 69 |

Refer to the above data. The average total cost of producing 3 units of output is:

A. $14

B. $12

C. $13.50.

D. $16.

Marginal cost is the

a. rate of change in total fixed cost that results from producing one more unit of output.

b. change in total cost that results from producing one more unit of output.

c. change in average variable cost that results from producing one more unit of output.

d. change in average total cost that results from producing one more unit of output.

## Average fixed cost

The total fixed cost for producing one unit of output is the average fixed cost. The average fixed cost curve is a rectangular hyperbola. It is also the difference between average cost and average variable cost.

## Answer and Explanation: 1

Become a Study.com member to unlock this answer! Create your account

View this answer- The answer is option D. $16.

. {eq}Average\,total\,cost=\frac{Total\,Cost}{Output} \\ => Average\,total\,cost=\frac{48}{3}=16 {/eq}

- The answer...

See full answer below.

#### Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question#### Search Answers

#### Learn more about this topic:

from

Chapter 3 / Lesson 23Learn what is the average total cost. Learn its use, its formula, and how to apply it.

#### Related to this Question

- Answer the question based on the following cost data: Output Total cost($) 0 24 1 33 2 41 3 48 4 54 5 61 6 69 Refer to the above data. 1. What is the total variable cost of producing 5 units: A. $61. B. $48. C. $37. D. $24 2. What is the average tota
- Refer to the data below and answer the following questions: 3) What is the total fixed cost? a) $6.25 b) $100.00 c) $150.00 d) $50.00 4) What is the average total cost of five units of output? a) $69
- Given the cost information below, answer the following questions. A. When the output is 10, what is the total variable cost? B. When the output is 20 what is the average fixed cost? C. When the output is 30, what is the average variable cost? D. When the
- Use the following table below to answer the questions given: 30) What is the average total cost at 6 units? A) 7.5 B) 10.67 C) 7.67 D) 7.8 31) What is the average total cost at 8 units? A) 7.5 B) 10.
- Refer to the figure below and answer the following question: At output level Q_1 compare average variable cost and average fixed cost.
- Using the given total cost schedule below, answer the following questions. A. When output is 10, what is the total variable cost? B. When output is 20, what is the average fixed cost? C. When output is 30, what is the average variable cost? D. When output
- Answer the next three questions referring to the following table showing Total Revenue (TR) and Total cost (TC), for a perfectly competitive firm operating in the short run. <table id="tg-iWjyS"><tr><
- In answering the following questions, refer to the table below which shows average total costs (ATC) for a manufacturing firm whose total fixed costs are $10. Output ATC 1 $40 2 $27 3 $29 4 $31 5
- The table below presents the short-run production and costs at Fast Breakfast. Use the data in the table to answer the question below. Construct a graph of average total costs and marginal costs.
- Use the following table to answer the questions below: 1) At 729 units of output, what is the average fixed cost (AFC) of the firm? a) $10.29 b) $9.18 c) $11.40 d) $9.84 At 1427 units of output,
- Costs of Production Questions: Use the following information to answer the four questions listed: [TABLE] 1. Given the costs schedule above, what is the average total cost of producing four units of output? 2. Given the costs schedule above, the total co
- Answer the next question on the basis of the following date. Output: 0 - 1 - 2 - 3 - 4 - 5 - 6 Total Cost (in $): 24 - 33 - 41 - 48 - 54 - 61 - 69 The marginal cost associated with the production of the third unit of output is: a. $12. b. $8. c. $7. d. $6
- Complete the following table by filling in the values under the average total cost column. | Output | Fixed cost | Variable cost | Average total cost | 1 | 1,000 | 500 | | 2 | 1,000 | 800 | | 3 | 1,000 | 1,000 | | 4 | 1,000 | 1,300 | | 5 | 1,000 | 1,
- Complete the following table by filling in the values under the average fixed cost column. | Output | Fixed cost | Variable cost | Average fixed cost | 1 | 1,000 | 500 | | 2 | 1,000 | 800 | | 3 | 1,000 | 1,000 | | 4 | 1,000 | 1,300 | | 5 | 1,000 | 1,
- The following questions are based on the table below, which shows a firm's average variable cost and average total cost. |Output |Average Total Cost |Average Variable Cost | 1|$40|$160 |2|35| 95 |3| 40| 80 |4|45 |75 |5| 50 |74 |6| 55| 75 In the short
- Complete the following table by filling in the values under the average variable cost column. | Output | Fixed cost | Variable cost | Average variable cost | 1 | 1,000 | 500 | | 2 | 1,000 | 800 | | 3 | 1,000 | 1,000 | | 4 | 1,000 | 1,300 | | 5 | 1,00
- Given the variable cost data in the following table and assuming fixed costs (FC) equal $487, create a table showing output (Q), fixed cost (FC), variable cost (VC), total cost (TC), average fixed cos
- Assume a single firm in a purely competitive industry has variable costs as indicated in the following table in column 2. Complete the table and answer the questions. (1) Total product (2) Total var.
- A firm uses only one variable input and faces the following Average Cost function: AC = Q2 - 12Q + 108 + 10/Q. Calculate the output level (Q) at which diminishing returns set in.
- A firm uses only one variable input and faces the following Average Cost function: A C Q 2 15 Q 48 Calculate the output level Q at which diminishing returns set in.
- Refer to the cost table below to answer two questions about profit Instructions Indicate negative responses with a negative sign Average Total Cost Rate of Output Fixed Costs 120 120 120 120 120 120 1
- A firm uses only one variable input and faces the following Average Cost function: AC = Q^2 - 12Q + 108 + 10/Q Calculate the output level (Q) at which diminishing returns set in.
- 1. You are given costs for a firm in the following table. From the information given, calculate the Average Variable Cost when the firm produces 12 units. Round your answer to one decimal. 2. Demand i
- Consider the following table with the costs of producing gadgets and answer the questions below: A) What is the total fixed cost of producing gadgets for this firm? B) What is the marginal cost of pro
- Complete the following table of short run fixed costs. Output (q) Total Fixed Cost (TFC) Average Fixed Costs (AFC) 1 $2,000 2 2,000 3 2,000 4 2,000 5 2,000
- Consider the following cost function: C = 0.3q^3 - 5q^2 + 85q + 150. When output is 14 units, average cost is $. (Enter a numeric response using a real number rounded to two decimal places.) When o
- Given the following data provided in the table below, what will the fixed costs equal for production at the quantity (Q) level 4? |Q|P|TC|TR|MR|MC|Profit |0|$4|$11| | | | |1|$4|$14| | | | |2|$4|$18| | | | |3|$4|$26| | | | |4|$4|$30| | | | |5|$4|$37| | | |
- A) Complete the following table of short-run fixed costs. (Round to two decimal places.) B) As output increases, total variable cost (blank) and average variable cost (blank). (a) increases; decreases
- In the table below are given the output (X), T.C., and Price for a firm. Complete the following table and then answer the questions at the bottom of the table. (Table)
- A company has the following cost information, where Q is output and TC is total cost: What is the average cost equal to at Q = 7?
- Fill in the following table. Then answer the questions that follow it. Output ; Price ; TR ; TC ; MR ; MC ; 0 ; $45 ; $20 ; --- ; 1 ; $40 ; $25 ; 2 ; $35 ; $35 ; 3 ; $30 ; $60 ; 4 ; $25 ; $95 ; a. How
- Use the following table to answer the following questions: If the workers are paid $10 per hour, the price of the product is $4, and the fixed cost of the business is $10, then how many workers should the business employ? a. six b. five c. seven d. thre
- a. Complete the following cost schedule by computing average fixed cost and average variable cost. |Output|Total Cost|Average Fixed Cost|Average Variable Cost |0|$600| | |1|800| | |2|1,050| | |3|1,
- Using the chart above, answer the following questions. 1. If the firm is in profit-maximizing mode and facing a market price of $2.35, at what output listed on the chart should it produce? 2. Why should it produce at that level? 3. Under economic reasonin
- Consider the attached table, which describes the Kaener Firm, a profit-maximizing price taker. Use the information provided to answer the following questions. 1) What is the value for Cell B? 2) What
- A firm's average total cost is $90, its fixed cost is $1000 and its output level (Q) is 100 units. Calculate the average variable cost (AVC) of the firm.
- Use the following table to answer the questions. # Units Produced Total Revenue Total Costs 0 0 0 1 100 50 2 180 110 3 250 180 4 290 270 5 310 380 a) What is the marginal revenue of producing the 2nd
- Consider total cost and total revenue, given in the following table: ||Quantity (units)||Total cost ($)||Marginal cost ($)||Total revenue ($)||Marginal revenue ($)||Profit |0|8| |0| | |1|9| |8| | |2|1
- Assume the following information: The firm sets the price on the basis of average cost. The planned output is 100 units. The total cost function is TC = 1500 + 4Q + 0.8Q^2. The net profit margin is 500% on each unit of output. Determine/calculate the foll
- Fairweather Construction, Inc., has the following short-run total cost schedule: A) What is the firm's average fixed cost when Q = 5? B) What is the firm's average variable cost when Q = 4? C) What is
- Use the following to answer questions 1 and 2 Number of Workers Total Product Product Price 0 0 5 00 1 10 4 75 2 18 4 25 3 26 3 75 What is the marginal product of the third worker
- Suppose the total cost of producing 5,000 tennis balls is $50,000, and the fixed cost is $20,000. What is the variable cost ? (Enter a numeric response using an integer.) When output is 5,000?, what is the average variable cost?(Enter a numeric response
- Use the information below to answer the following question about a commodity producer (of "widgets"). The following data show the costs of production for a widget producer, assumed to be operating in
- Refer to the below table and answer the following questions.(1) What are the fixed costs? a)$50 b)$500 c)$0 d)$550 (2) When output is 3, what is the firm?s variable cost of production? a)$45 b)$625 c
- Refer to the data below to answer the following questions. a. What share of U.S total income in 2010 consisted of wages and salaries? b. What share of U.S total income in 2010 consisted of corporate
- A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below.
- Consider the following total cost function of a firm: C =50 +100q - 6q(TO SECOND POWER) + 0.5q (to third power) Where, C is total cost and q is the level of output. Determine the returns to scale f
- Based on data from accounting, assume the total variable cost is $600,000 and the average variable cost is 10 + 0.02Q, which Q is the output (in units). Also, assume that the average variable cost is
- Based on the information on the following table, complete the questions below. 0 10 3 1 10 5 2 10 6 3 10 8 4 10 11 5 10 16 6 10 23 7 10 33 8 10 47 9 10 62 10 10 78 a. The profit-maximizing output is
- Average variable cost equals all of the following except: A. variable cost times output. B. average total cost minus average fixed cost. C. variable cost divided by output. D. (total cost minus fixed cost) divided by output.
- At 50 units of output total cost is $5,000 and total variable cost is $4,000. Based on this information, which of the following is true? a. average total cost $100 b. total fixed cost is $1,000 c.
- Use the following table to answer the questions that follow. Answer the question below: Workers Total Product (output) Marginal Product Product Price $ Total Revenue Hour $ Marginal Revenue Product P
- You have collected the following data on output and total variable costs: |Q |TVC ($) |1| 60 |2 |110 |3 |150 |4 |180 |5 |200 |6 |230 |7 |280 |8 |350 |9 |440 |10| 550 a. Identify the range
- Use the following data to answer the questions below. Assume a perfectly competitive product market: units of labor: 0, 1, 2, 3, 4, 5; units of output: 0, 8, 12, 17, 21, 23. (a.) Calculate the marginal revenue product
- Assume that a firm's long-run average total cost (ATC) is constant. Which of the following functions, where Q is output; L is labor input; K is capital input, is more likely to represent the firm s production? Please explain briefly about your choice. (a
- The following data is collected on output and total variable costs. Identify the range of output exhibiting increasing returns (increasing MP) and the range exhibiting diminishing returns (decreasing MP).
- Use the definitions for TFC, TVC, TC, AFC, AVC, ATC and SMC along with the data provided below to fill in the missing values. Total Product Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Margin
- A firm has determined that its variable costs are given by the following relationship: VC = 0.05Q3 - 5Q2 + 500Q, where Q is the quantity of output produced. Determine the output level (Qm) where average variable costs are minimized.
- Compute the Costs. Consider a firm that has a fixed cost of? $60. Complete the fixed cost (FC) column. (Enter your responses rounded to the nearest dollar.) FC VC TC MC AFC AVC ATC
- The table below is the price and quantity demanded for restaurant meals. Calculate the total revenues for each price level. Complete The table and answer questions below a. Over what price range is
- You have collected the following data on output and total variable costs: a. Identify the range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns (decreasing MP). b. Current fixed costs for the company
- The following data show the total output for a firm when specified amounts of labor are combined with a fixed amount of capital. When answering the question, you are to assume that the wage per unit of labor is $25 and the cost of the capital is $100.
- Refer to the figure below, and answer the following questions. a. What level of output should this firm produce? b. What price should this firm charge? c. Will this firm earn a profit or will it earn a loss? d. Would you expect entry or would you expec
- You have collected the following data on output and total variable costs: |Q |TVC($) | 1 |60 |2 |107 |3| 145 |4 |178 |5 |213 |6 |253 | 7 |304 |8 |370 |9 |455 | 10| 566 Over what range of output does this firm exhibit increasing returns (increasin
- Consider the following table, with cost data corresponding to butter production: A) Complete the missing data in the table above. B) Draw a graph consisting of the average fixed cost, average variable
- |Total Output |Total Cost |$ 0 |$100 |2| 196 |4 |212 |6 |310 |8 |430 |10| 570 In the table above, when total output is 8 units, the average variable cost is a. $3,440. b. AVC cannot be determ
- You have collected the following data on output and total variable costs: Identify the range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns (decreasing MP).
- If total fixed cost is $1,000, average variable cost is constant at $5.00 per unit over the relevant range of output, and average total cost is $6, what is average fixed cost? A. $1 B. $5 C. $10 D. $1,000
- Complete the table below. A worker costs $96 a day and the firm has fixed costs of $200. Round your answers to 1 decimal. What is the average total cost for 4 workers? Show your work.
- David's total variable cost function has been calculated to be TVC = 100Q + 30Q^2 - Q^3, where Q is the number of units of output. Answer the following questions based on this function.
- As business increases its level of production in the short run, which of the following cannot rise? a. average variable cost b. average fixed cost c. average total cost d. marginal cost
- The total cost (TC) of producing output (Q) is __TC = 200 + 5Q__. What is the average total cost?
- Total Cost Function is given below: TC= 100 + 5 Q + 2.5 Q^2 If the output level; Q = 10 units, find the following:
- A firm uses only one variable input and faces the following average cost function: C = 1500Q^{-1} + 300 - 36Q + 1.5Q^2. Calculate the output level (Q) that minimizes the average variable cost.
- If total costs are $190 and fixed cost are $82, then variable costs are: $Answer
- If the average total cost is $50 and the average fixed cost is $15 when output is 20 units, what is the firm's total variable cost at that level of output?
- A company has the following cost information, where Q is output and TC is total cost: What is the total fixed cost equal to?
- A firm has fixed costs of $60 and variable costs as indicated in the table below. Complete the table.
- A firm has to determine that its variable cost given by the following relationship VC = 0.05 Q^3 + 0.5 Q^2 + 500 Q, where Q is the quality of output produce. i) Determine the output level where average variable cost are minimized. ii) Determine the output
- Complete the following table, assuming that each unit of labor costs $75 per day, and answer the questions.
- If average fixed costs are 9.7 and average variable costs are 9.6 at 3 units of output, what are average total costs? In other words, what are average total costs per unit at 3 units of output?
- An economist estimated that the cost function of a single-product firm is: C(Q) = 50 + 25 Q + 30 Q^2 + 5 Q^3. Based on this information, determine the following: a. The fixed cost of producing 10 units of output. b. The variable cost of producing 10 units
- A firm's average total cost is $80, its average variable cost is $75, and its output is 50 units. Its total fixed cost is A. less than $100. B. more than $300. C. between $200 and $300. D. between $100 and $200.
- Given a production function, F(l,k)=3l^(1/3)k^(2/3) and a level of output q = 324, answer the following: a) Find the long run minimum cost if the input prices are w = 1 and v = 4
- Assume that in the short run a firm which is producing 100 units of output (Q) per-period has average total costs (ATC) of $5 and average fixed costs (AFC) of $2. It may be concluded that: A) TFC = $
- A firm's average total cost is $80, its fixed cost is $1000, and its output is 100 units. Its average variable cost A. is between $40 and $60. B. is more than $60. C. is less than $40. D. The cost cannot be determined without more information.
- The table below presents the short-run production and costs at Fast Breakfast. Use the data in the table to answer the question below. | Number of workers | Quantity of Bagel per Week | Cost of oven | Cost of workers | 0 | 0 | $200 | $0 | 1 | 100 | $200
- A community health center has assembled the following data cost and volume. Calculate its average and marginal costs for volumes ranging from 25 to 40. What patterns do you see? Visits Total Cost 20 $
- The table below presents the short-run production and costs at Fast Breakfast. Use the data in the table to answer the questions below. | Number of workers | Quantity of Bagel per Week | Cost of oven | Cost of workers | 0 | 0 | $200 | $0 | 1 | 100 | $20
- For the following total revenue and total cost functions of a firm: TR = 22Q - 0.5Q^2, TC = \frac{1}{3}Q^3 - 8.5Q^2 + 50Q + 90. a) Determine the level of output at which the firm maximizes its total p
- At output level Q_1, what is happening to average total cost?
- A firm has fixed costs equal to $5,000 and variable costs as listed below. Calculate TC, AFC, AVC, ATC, and MC at each level of output. ||Output (Q)||Variable cost, $ ||Total cost||Average fixed cost||Average variable cost||Average total cost||Marginal co
- Does the following statement describe an aspect of economies of scale, constant return to scale, or dis-economies scale? Increasing outputs results in no charge to average cost.
- Use the following information to answer the next question. Chicken and beef are the only goods produced in the economy. Each is a constant-cost industry and each is currently in equilibrium. Suddenly
- You have collected the following data on output and total variable costs: |Q|TVC ($) |1|60 |2|107 |3|145 |4|178 |5|213 |6|253 |7|304 |8|370 |9|455 |10|566 Current fixed costs for the company equal $75. Draw two graphs, both with Q on the horizontal axis:
- Average total cost is $200 for a given output, total fixed cost is $100, and average variable cost is $140. What is the quantity being produced?
- The average total cost is $200 for a given output, the total fixed cost is 100 and the average variable cost is 140. What is the quantity being produced?
- If the total cost is $20,000 and the variable cost is $10,000 at an output of 10,000. What is the average fixed cost?
- If the total cost function for a product is given by: TC = 1500 + 5 Q - 10 Q^2 + Q^3. And if the output level is 100 unit, derive and find the value of: a. The fixed cost (FC), b. The variable cost (VC), c. The average cost (AC), d. The average fixe
- You have collected the following data on output and total variable costs: Current fixed costs for the company equal $150. Draw two graphs, both with Q on the horizontal axis: one graph shows TVC and TC, and the other shows AVC, AC, and MC.