AB224 Unit 8 Assignment
The accompanying table shows a boat manufacturer’s total cost of producing boats.
1. What is this manufacturer’s fixed cost?
2. For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC).
What is the minimum-cost output?
4. Joe Brown’s dairy operates in a perfectly competitive marketplace. Joe’s machinery costs $500 per day and is the only fixed input. His variable costs are comprised of the wages paid to the few workers he employs at the dairy and the grain he feeds to his dairy cows. His cost structure is shown on the accompanying table