econ1101 help!!! (1 Viewer)

[justnothing]

can someone help with this quest....

bedlinen p/l produces cotton sheets. B's costs of production are:

quantitity of sheets (per hour) total cost (per hour)
0 6
1 10
2 12
3 21
4 38
5 56
6 82
7 112

at an output of 4 sheets per hour, bedlinen's AFC is?

a) 1.50

can someone explain how this occurs

 

[kaitoufion]

Quantity (Qd) = 4
Total Cost (TC) = 38

Then...
Total Fixed Cost (TFC) = 6

Therefore...
AFC = TFC/Qd
= 6/4
= 1.50

That's why the answer is (a).

 

[tempco]

Quantity (Qd) = 4
Total Cost (TC) = 38

Then...
Total Fixed Cost (TFC) = 6

Therefore...
AFC = TFC/Qd
= 6/4
= 1.50

That's why the answer is (a).

thanks for that. couldnt figure out what the tfc was... damn obvious

 

[kaitoufion]

This question is from the Sample Paper right?
I did that about 2 days ago and I think some of the questions are so hard! >_<
I couldn't even find some of the answers from the textbook that we are using.