Microeconomics,, 16th Canadian Edition
- What is Firm A’s average fixed cost?
b. Firm B is producing 20 000 units of output, incurring a
total cost of $100 000 and total fixed cost of $20 000.
What is Firm B’s average variable cost?
c. Firm C is producing 750 units of output. Average variable
cost is $10 per unit and average fixed cost is $5 per unit.
What is Firm C’s total cost?
d. Firm D is producing 400 units of output. Average total
cost is $12 and average fixed cost is $4. What is Firm D’s
total variable cost?
e. Firm E is producing 1 250 000 units of output, incurring a
total cost of $20 million and total variable cost of $18
million. What is Firm E’s average fixed cost?
- The table below shows the total daily output for a firm producing
specialty cakes and operating with a fixed amount of capital. The
cost of labour is $100 per unit per day and the fixed cost of the
capital is $1000 per day.
