Labor Quantity Total cost AFC AVC ATC 0 0 160 خر 8 200 2 12 360 What is the Total Fixed Cost? O 320 200 160 O 40 30

What is a production technology?

What is die difference between accounting and economic profit?

A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.

Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?

What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?

What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?

quantity of machines 100 90 80 70 60 50 40 30 20 10 O $3450 O $6000 O $3000 (10,84) O $4250 10 20,20) 20 (30,9) 40,5) 40 50 quantity of workers 30 A jewelry firm uses workers and machines to make bracelets. Workers cost $100 per day and machines cost $50 per day. The firm produces 200 bracelets per day. The lowest variable cost of producing 200 bracelets is _q=200 60

What’s the the total fixed costs 8 10 12 Or 15