Suppose the imaginary company of Panthera is a small, Reno-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity Total Cost (Pairs) (Dollars) Marginal Cost (Dollars) Fixed Cost (Dollars) Variable Cost (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) 0 120 1 210 2 270 3 315 4 380 5 475 630 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $210, so you should start your ATC curve by placing a green point at (1, 210). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $90, so you should start your MC curve by placing an orange square at (0.5, 90).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 240 210 COSTS (Dolars per pair) 180 -0- ㅎ을 수 후원 ATC 100 AVC 20 120 8 60 30 0 0 2 4 QUANTITY (Pairs of boots)

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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Transcribed Image Text:Suppose the imaginary company of Panthera is a small, Reno-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) о 120 1 210 2 270 3 315 4 380 5 475 6 630 (Dollars) (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $210, so you should start your ATC curve by placing a green point at (1, 210). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $90, so you should start your MC curve by placing an orange square at (0.5, 90).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. COSTS (Dolars per pair) 240 210 180 100 120 8 60 30 0 0 2 3 QUANTITY (Pairs of boots) ྃ བ རྟེ ❖ ཕླེ ➢ MC AVC -σ ATC

Answer the following questions: 1. Fill in the remaining
cells of the following table. 2. Graph the following
graph, plot Douglas Fur's average total cost (ATC) curve
using the green points (triangle symbol). Next, plot its
average variable cost (AVC) curve using the purple
points (diamond symbol). Finally, plot its marginal cost
(MC) curve using the orange points (square symbol). (
Hint: For ATC and AVC, plot the points on the integer;
for example, the ATC of producing one pair of boots is $
210, so you should start your ATC curve by placing a
green point at (1, 210). For MC, plot the points
between the integers: For example, the MC of
increasing production from zero to one pair of boots is $
90, so you should start your MC curve by placing an
orange square at (0.5, 90).) Note: Plot your points in
the order in which you would like them connected. Line
segments will connect the points automatically.

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