Price = $20, quantity = 400 units, unit cost = $15, implicit costs = $4,000. What does economic profit equal? Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If the total cost is $40 when Q = 2 and the total cost is $45 when Q = 3, then what does marginal cost equal? (c) What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2? (d) Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as the quantity of output increases?

Price = $20, quantity = 400 units, unit cost = $15, implicit costs = $4,000. What does economic profit equal? Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If the total cost is $40 when Q = 2 and the total cost is $45 when Q = 3, then what does marginal cost equal? (c) What does average fixed cost equal at Q = 2 if total variable cost is $15 at Q = 2? (d) Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6(c) as the quantity of output increases?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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