Economic Question - Economic Costs

1.) Use the following information to list the total fixed costs, total variable costs, average fixed costs, total variable costs, average total costs, and marginal costs.

2.) Use the following table to answer the questions listed below. Question on page 2.

a.) List the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs.

b.) At what quantity of output does marginal cost equal average total cost and average variable cost?

3.) Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs and between marginal and average variable costs.

4.) What best accounts for the saying “Too many cooks spoil the broth?”

5.) If average fixed costs equal $40 and average total costs equal $100 when output is 10, then total variable cost when output is 10 must be:

a.) $40

b.) $60

c.) $600

d.) $6,000

6.) Could a first mover gain a suitable advantage from gaining experience? Explain.