« previous next »

Author Question: Assume that you have data on a firm's average fixed cost and average variable cost for various ... (Read 143 times)

awywial

  • Hero Member
  • *****
  • Posts: 577
on: Jun 29, 2018
Assume that you have data on a firm's average fixed cost and average variable cost for various levels of output and you are asked to calculate the total variable cost and total cost of the firm.
 
  Would this be enough information to perform this calculation? Explain

Question 2

Refer to Scenario 1 . If you start the course in such a way that each exam score is worse than your previous average what should happen to your average score? What would happen to your average if the next exam score was larger than your previous exam
 
  score? Explain.


shailee

  • Sr. Member
  • ****
  • Posts: 392
Reply #1 on: Jun 29, 2018
Answer to Question 1

This would be enough information. Total variable cost can be can be calculated by taking the average variable cost and multiplying times the output level. Total fixed costs can be derived by taking the average fixed costs and multiplying it times the level of output. The total cost of the firm is simply the sum of both of these figures.

Answer to Question 2

Your average would continue to fall. If you received a score on one examination that was higher than the previous exam score there wouldn't be any way to determine what would happen to your average unless you knew what this score was compared to your previous average, not your previous exam score.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

2006 Data:Top 25 Substances Involved in Human Exposures 2006 Data:Top 25 Substances Involved in Human Exposures
Recognizing data clusters Recognizing data clusters
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ... The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ...
Greet a First-Time Client With a Firm Handshake. Greet a First-Time Client With a Firm Handshake.
Variable expressivity of Waardenburg syndrome Variable expressivity of Waardenburg syndrome
Video: Osmosis - Isotonic, Hypotonic, and Hypertonic​ Solutions

For a complete list of videos, visit our video library