4. The average total cost for printing 10,000 copies of an issue of a magazine is $0.45 per copy. For 20,000 copies, the average total cost is $0.35 apiece; for 30,000, the average total cost is $0.30 per copy. The average total cost continues to decline slightly over every level of output that the publishers of the magazine have considered. Sketch the approximate shapes of the average and marginal cost curves. What are some variable costs of publishing magazines? Some fixed costs?
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Ответ:
The given information suggests that as the output increases, the average total cost decreases. This indicates economies of scale, a situation where the average cost per unit decreases as the scale of production increases.
Let's sketch the approximate shapes of the average and marginal cost curves:
1. **Average Cost Curve (AC):**
- The average total cost is $0.45 for 10,000 copies, $0.35 for 20,000 copies, and $0.30 for 30,000 copies.
- This suggests a downward-sloping average cost curve, indicating economies of scale.
2. **Marginal Cost Curve (MC):**
- Since the average total cost is declining, the marginal cost must be below the average cost curve.
- The marginal cost curve typically intersects the average cost curve at its minimum point and then rises.
Variable costs of publishing magazines may include expenses directly tied to the production of each copy, such as printing costs, paper, and ink. Fixed costs might involve expenses that remain constant regardless of the number of copies produced, such as salaries of permanent staff, rent for facilities, and equipment costs.
In summary, the shapes of the cost curves suggest efficiency in production as output increases, leading to lower average costs. Variable costs are those that vary with production levels, while fixed costs remain constant.
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