Author Question: Relationship between Short and Long Run Average CostsThe table shows information about Umbrella ... (Read 421 times)

llesku · **on:** Nov 23, 2022

Question 1

Interpreting the Shape of Cost Curves

Use the information in the graph to find costs at an output level of Q1=300.

If C1=$2.50, C2=$7.50, and C3=$14.50, what is marginal cost? What is total cost? What is total variable cost? What is total fixed cost?
◦ $750, $14.50, $7.50, $7.00
◦ $2.50, $14.50, $7.50, $7.00
◦ $2.50, $4350, $2250, $2100
◦ $750, $4350, $2250, $2100

Question 2

Relationship between Short and Long Run Average Costs

The table shows information about Umbrella Corporation's short-run costs.

Quantity of Prescription Drugs	Total Fixed Cost	Total Variable Cost	Total Cost
0	$4000
1		$7
2		$14
3		$21
4			$4028

What is the average fixed cost of producing 4 prescription drugs? What is the average variable cost?
What is the average total cost of producing 2 prescription drugs? What is the marginal cost?
◦ $2000, $7, $2007, $2000
◦ $2000, $21, $2007, $2000
◦ $1000, $7, $2007, $2000
◦ $1000, $7, $2007, $7

bainer89 · **Reply #1 on:** Nov 23, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 49% of students answer this correctly