Calculation Of Different Cost Levels

Question

A manager in a firm has been assigned a job to find costs at different levels of output. He is provided with the following table and asked to fill up the missing values since there was no information available.

Output

Total cost

Fixed cost

Variable cost

Average variable cost

Average total cost

1

2000

500

 

 

 

2

2500

 

 

 

 

3

2800

 

 

 

 

4

3300

 

 

 

 

5

4000

 

 

 

 

6

4800

 

 

 

 

7

6000

 

 

 

 


He was also asked to find the marginal cost at output level of 5 units.

Summary

The question belongs to Economics, Micro-economics and it discusses about a scenario where a manager of a firm has to find costs of different levels of output with the given data of total cost and fixed cost.

Total Word Count 188

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