Chapter 13: Cost of Production Questions: 1. Which is bigger... accounting profit vs. economic profit? Why? 2. Why does marginal product diminish? 3. Which cost curve does diminishing marginal product affect? Why? 4. Fill in Table A. 5. Draw a cost graph below. Show the following: TC, FC, VC 6. Draw an average cost graph below. Show the following: ATC, AVC, AFC, MC 7. On the average cost graph, identify economies and diseconomies of scale Table A Q Fill in the blank spaces of this table. VC TC AFC AVC ATC $50 n/a n/a n/a MC $10
Chapter 13: Cost of Production Questions: 1. Which is bigger... accounting profit vs. economic profit? Why? 2. Why does marginal product diminish? 3. Which cost curve does diminishing marginal product affect? Why? 4. Fill in Table A. 5. Draw a cost graph below. Show the following: TC, FC, VC 6. Draw an average cost graph below. Show the following: ATC, AVC, AFC, MC 7. On the average cost graph, identify economies and diseconomies of scale Table A Q Fill in the blank spaces of this table. VC TC AFC AVC ATC $50 n/a n/a n/a MC $10
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 5CQQ
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Transcribed Image Text:Chapter 13: Cost of Production
Questions:
1. Which is bigger...... accounting profit vs. economic profit? Why?
2. Why does marginal product diminish?
3. Which cost curve does diminishing marginal product affect? Why?
4. Fill in Table A.
5. Draw a cost graph below. Show the following: TC, FC, VC
6. Draw an average cost graph below. Show the following: ATC, AVC, AFC, MC
7. On the average cost graph, identify economies and diseconomies of scale
Table A
Q
0
1
2
3
4
5
6
Fill in the blank spaces of this table.
VC
TC
AFC AVC ATC
$50
n/a
n/a
n/a
$10 $60.00
10
30
80
100 150
150
210
Cost Graph
260
16.67
12.50
20 36.67
37.50
30
8.33 35
43.33
MC
$10
30
60
Average Cost Graph
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