Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs:
 | QUANTITY OF HOUSES | ||||||
 | PAINTED PER MONTH | ||||||
1 | 2 | 3 | 4 | 5 6 | 6 | 7 | |
Variable costs | $10 | $20 | $40 | $80 | $160 | $320 | $640 |
Calculate average fixed cost, average variable cost, and average total cost for each quantity. What is the efficient scale of the painting company?
AFC ATC AVC
ReplyDelete200 210 10
100 110 10
66.6 79.9 13.3
50 70 20
40 72 32
33.3 86.6 53.3
28,5 119,9 91.4
A cc. to me the efficient scale will be 70 at 4th quantity because thats the value where ATC minimizes
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ReplyDeletePainting Contractor in Chennai
How is it possible to determine Effeicient Scale without Marginal Cost.Isnt effeicient scale where Marginal cost curve intersect Avg total cost curve?
ReplyDelete@sarah hanif
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