Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

  1. 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?

  2. 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.

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