9 Healthy Harry's Juice Bar has the following cost schedules: yC AY Q (vats) Variable Cost Total Cost $ 30 10 40 55 25 75 3 45 100 70 4 130 100 165 135 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relation- ship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average-variable- cost curve? Explain. 10. An industry currently has 100 firms, all of which have fixed costs of $16 and average variable cost as follows: Quantity Average Variable Cost poly $1 4 4 a. Compute marginal cost and average total cost. b. The price is currently $10. What is the total quantity supplied in the market? c. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? d. Graph the long-run supply curve for this market. 11. Suppose there are 1,000 hot pretzel stands oper- ating in New York City. Each stand has the usual
9 Healthy Harry's Juice Bar has the following cost schedules: yC AY Q (vats) Variable Cost Total Cost $ 30 10 40 55 25 75 3 45 100 70 4 130 100 165 135 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relation- ship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average-variable- cost curve? Explain. 10. An industry currently has 100 firms, all of which have fixed costs of $16 and average variable cost as follows: Quantity Average Variable Cost poly $1 4 4 a. Compute marginal cost and average total cost. b. The price is currently $10. What is the total quantity supplied in the market? c. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? d. Graph the long-run supply curve for this market. 11. Suppose there are 1,000 hot pretzel stands oper- ating in New York City. Each stand has the usual
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 7 steps with 6 images
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax