Economics homework… inputs and costs

The accompanying table shows a boat manufacturer’s total cost of producing boats.

 

Cost

0

1

2

3

4

5

6

7

8

9

Quantity of Boats		Total
$        450,000
$        490,000
$        510,000
$        520,000
$        540,000
$        570,000
$        610,000
$        670,000
$        750,000
$        870,000

 

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)

 Qty of boats

Total Cost

Variable Costs(a.)Average Variable Costs(b.)Average Total Costs(c.)Average Fixed Cost(d.)0$450,000—-1490,000    2510,000    3520,000    4540,000    5570,000    6610,000    7670,000    8750,000    9870,000      

3.   
What is the minimum-cost output?

  

4.    For each level of output, calculate this manufacturer’s marginal cost (MC)

 

(For convenience, place the Marginal Cost between 0 and 1 boat on the second row, the Marginal Cost between 1 and 2 boats on the third row, and so on)

 Qty of boatsTCMarginal Costs0$450,000-1490,000 2510,000 3520,000 4540,000 5570,000 6610,000 7670,000 8750,000 9870,000  

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References:

 

2 

8 

2 

2 

  

3 

3 

  

2 

3 

Total 25 

Microeconomics: Unit 6 Assignment: Production and Costs
Content (14 points)	Points Possible	Points Earned
Find the manufacturer’s fixed cost.
Complete the chart for quantities from 1 to 9 to include: ·         Variable costs ·         Average Variable costs ·         Average Total Costs ·         Average Fixed costs.
Calculate the minimum cost output
Calculate the manufacturer’s marginal cost for each level of output.
Analysis (6 points)
Work demonstrates synthesis of concepts, research, and experience.
Analysis exceeds basic comprehension to demonstrate higher-order thinking.
Writing (5 points)
Correct use of APA 6th edition format, all sources used to support the paper are referenced.
Sentences are clear, concise, and direct; tone is appropriate, spelling, grammar, and punctuation are correct.