340 425 6 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC curves, plot the points on the integer; for example, the average total cost of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For marginal cost, plot the points between the integers; for example, the marginal cost of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 200 175 ATC 150 125 AVC 100 MC 75 50 25 QUANTITY OF OUTPUT (Pairs of boots) COSTS (Dollars per pair)
340 425 6 540 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC curves, plot the points on the integer; for example, the average total cost of producing one pair of boots is $200, so you should start your ATC curve by placing a green point at (1, 200). For marginal cost, plot the points between the integers; for example, the marginal cost of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 200 175 ATC 150 125 AVC 100 MC 75 50 25 QUANTITY OF OUTPUT (Pairs of boots) COSTS (Dollars per pair)
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 14E
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Question
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Transcribed Image Text:340
425
540
On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable
cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol).
(Hint: For ATC and AVC curves, plot the points on the integer; for example, the average total cost of producing one pair of boots is $200, so you
should start your ATC curve by placing a green point at (1, 200). For marginal cost, plot the points between the integers; for example, the marginal
cost of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).)
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
200
175
ATC
150
125 -
AVC
100
MC
75
50
25
1
4
QUANTITY OF OUTPUT (Pairs of boots)
COSTS (Dollars per pair)
8 6
Transcribed Image Text:Douglas Fur is a small manufacturer of fake-fur boots in Vancouver. The following table shows the company's total cost of production at various
production quantities.
Fill in the remaining cells of the table.
Quantity
Total Cost
Marginal Cost
Total Fixed Cost
Variable Cost
(Pairs)
(Dollars)
(Dollars)
Average Variable Cost
Average Total Cost
(Dollars)
(Dollars)
(Dollars per pair)
(Dollars per pair)
120
200
240
3
285
4
340
425
6.
540
On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable
cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol).
(Hint: For ATC and AVC curves, plot the points on the integer; for example, the average total cost of producing one pair of boots is $200, so you
should start your ATC curve by placing a green point at (1, 200). For marginal cost, plot the points between the integers; for example, the marginal
cost of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).)
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
200
175
ATC
150
125
AVC
100
75
MC
STS (Dollars per pair)
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