Week 3 2ba201
1. Fill in the table below. Assume TC stands for Total Cost, TFC as Total Fixed Cost, TVC as Total Variable Cost, ATC as Average Total Cost, AFC as Average Fixed Cost, AVC as Average Variable Cost, and MC as Marginal Cost. TC
TFC
TVC
ATC
AFC
AVC
MC
Units of Output
0
-20
20
0
0
0
0
0
1
-21
20
1
21
20
1
1
2
-24
20
4
12
10
2
3
3
-32
20
12
10.67
6.67
4
8
4 -48
20
28
12
5
7
17
5
-75 20
55
15
4
11 27
6
-126 20 96 21
5
16 51
7
-168 20 148
24
2.86 21.14 42
8
-254 20
234
31.75
2.5
29.25
86
9 -380 20
360
42.2 2.2
40
126 Ms. Duvall,
I went to the website that you suggested, and I am still lost. I think my hang up is that I do not know how to find the FC or the VC since I cannot find all of the other costs without them. I tried all week to grasp this, but I think the examples in the book where it gives you a wage for the TFC is what has got my brain warped. I really have tried, I even yelled at my husband haha to get some frustration out and graded his English papers vigorously and that didn’t work as well. BUT if you could shed some light on the HOW MAYBE next time I can do it .
Thanks for helping me
2. Using the graph below, answer the following questions:
The market demand at the beginning is D1, and its corresponding marginal revenue is MR1. The initial ATC is ATC1, and the original supply is MC1. Therefore,the monopolist sells _10_ units at $ _25_ per unit, and his/her total profit is $_____100_______. After a given time period, due to investment and technological advances, which cost the monopolist an increase in TFC, results in a cost of production decrease to ATC2 and its corresponding supply to MC2. The monopolist, then, in the absence of price regulation by the government, would like to produce ___15____ units and charge a unit price of $____20______. However, due to quality improvements and effective advertising, the demand increases to D2, while its corresponding marginal revenue is MR2, with ATC2 and
TFC
TVC
ATC
AFC
AVC
MC
Units of Output
0
-20
20
0
0
0
0
0
1
-21
20
1
21
20
1
1
2
-24
20
4
12
10
2
3
3
-32
20
12
10.67
6.67
4
8
4 -48
20
28
12
5
7
17
5
-75 20
55
15
4
11 27
6
-126 20 96 21
5
16 51
7
-168 20 148
24
2.86 21.14 42
8
-254 20
234
31.75
2.5
29.25
86
9 -380 20
360
42.2 2.2
40
126 Ms. Duvall,
I went to the website that you suggested, and I am still lost. I think my hang up is that I do not know how to find the FC or the VC since I cannot find all of the other costs without them. I tried all week to grasp this, but I think the examples in the book where it gives you a wage for the TFC is what has got my brain warped. I really have tried, I even yelled at my husband haha to get some frustration out and graded his English papers vigorously and that didn’t work as well. BUT if you could shed some light on the HOW MAYBE next time I can do it .
Thanks for helping me
2. Using the graph below, answer the following questions:
The market demand at the beginning is D1, and its corresponding marginal revenue is MR1. The initial ATC is ATC1, and the original supply is MC1. Therefore,the monopolist sells _10_ units at $ _25_ per unit, and his/her total profit is $_____100_______. After a given time period, due to investment and technological advances, which cost the monopolist an increase in TFC, results in a cost of production decrease to ATC2 and its corresponding supply to MC2. The monopolist, then, in the absence of price regulation by the government, would like to produce ___15____ units and charge a unit price of $____20______. However, due to quality improvements and effective advertising, the demand increases to D2, while its corresponding marginal revenue is MR2, with ATC2 and