Purchase Solution

a firm's costs of production

Not what you're looking for?

Ask Custom Question

(See attached file for full problem description with chart and diagram)

---
1. Relationship between the costs

Exhibit 2 shows a firm's costs of production in the short run. First, complete Table 2 below. Based on the Table, answer the following:
a. Find TC, TFC and TVF for an output level of 3 units and 6 units.
b. You know the TC of producing 6 units and the MC producing the 6th unit. Can you find the TC of producing 5 units?
c. What would this firm's TFC be at an output of 10 units? 15 units?
d. Find AFC for output levels of 3 and 6 units. Are there 2 ways to get these numbers? Do they produce identical results?
e. Replicate Exhibit 2 and shade the area the represents Total Cost of producing 3 units. Which part of it is TFC? TVC?
---

Attachments
Purchase this Solution
Solution Summary

Calculate costs of production.

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Total risk affects a firm's production costs

    178655 Total Risk Affects a Firm's Production Costs How might total risk affect a firm's production costs and its ability to sell? Give some examples of firm's in financial distress that saw their sales drop.

  • Suppose you own a home remodeling company. You are currently

    In the long run, what do you expect will happen to: your firm's costs of production? Explain. The cost of production will increase, because the industry is a cost-increasing industry.

  • Global Business Management Decisions

    At each level of production and time period being considered, marginal costs include all costs which vary with the level of production, and other costs are considered fixed costs.

  • Computation of Profit-Maximizing Price Level and Output

    The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit-maximizing level of output.

  • Consumer surplus & output price

    (Assume that competing suppliers have the same economic costs as the original producer.) Compute the resulting change in consumer surplus. Under patent protection, a firm has a monopoly in the production of a high-tech component.

  • Gross Margin Versus Contribution Margin

    Costs are generally classified as fixed (i.e., their total amount does not change over a relevant range of production), variable (i.e., their total amount changes over a relevant range of production), or hybrid (i.e., a mixture of fixed and variable costs

  • Analyzing behavior of Increasing cost industry

    In the long run, what do you expect will happen to: a. Your firm's costs of production? Explain. b. The price you can charge for your remodeling services? Why? c. Profits in home remodeling? Why? a. Your firm's costs of production?

  • Variable Cost and Employment Estimations for Output Levels

    The impact of an increase in fixed costs varies depending on the firm's ability to operate at a loss in the short-run.

  • Credit Extension Policies

    134403 Credit Extension Policies Discuss how each of the following factors would tend to affect a firm's credit extension policies: a. A shortage of working capital b.

View More Related Solutions