Your company paid a corporate spy to find out the short-run cost of a competitor. The spy obtained the information below on your competitor's quantities, total variable cost, and total cost. An X appears in place of numbers the spy failed to get. Your boss asks you to calculate some of the information the spy was not able to obtain. Fill in the blanks below with the missing information. Output Total Variable Total cost
0 $0 $250
25 450
50 300
75 375
100 600 850
125 1125
150 1200
175 1875
200 2000 2250

Output       Total Variable       Total cost

  0                         $0                  $250

  25                      200                  450

  50                      300                 550

  75                       375                 625

 100                      600                  850

 125                      875                  1125

 150                     1200                 1450

 175                     1625                1875

200                     2000               2250

Explanation:

Note: The data in the question are merged together. They are therefor sorted before answering the question as follows:

Output       Total Variable       Total cost

  0                         $0                  $250

  25                                                450

  50                      300

  75                       375

 100                      600                  850

 125                                               1125

 150                     1200

 175                                               1875

200                     2000               2250

The explanation of the answer in now given as follows:

Since the Total Cost when the output is zero is equal to $250, that implies that the Total Fixed Cost is equal to $250. Also, since we have:

Total Cost = Total Total Variable + Total Fixed Cost (1)

Where:

Total Fixed Cost = $250

Substituting Total Fixed Cost = $250 into equation (1), the two formulae to be used to fill the blanks are as follows:

Total Cost = Total Total Variable + $250 (2)

Total Total Variable = Total Cost - $250 (3)

Using equations (2) and (3) as applicable, the value for each of the blanks is calculated and filled (in bold italicized figures) and presented as follows:

Output       Total Variable       Total cost

  0                         $0                  $250

  25                      200                  450

  50                      300                 550

  75                       375                 625

 100                      600                  850

 125                      875                  1125

 150                     1200                1450

 175                     1625                1875

200                     2000               2250

answera major piece of legislation affecting the financial industry and containing significant privacy provisions for individuals;

yes the correct answer was

b.the increased supply will create a surplus.