Problem - Total Cost, Average Cost, Marginal Cost

 

Question:

(a)  Complete the following table of costs for a firm.  (Note: enter the figures in the MC  column between outputs of  0 and 1, 1 and 2, 2 and 3, etc.) 

 

Output (Units)

TC  ($)

AC  ($)

MC  ($)

0

55

 
     

30

1

85

85

 
     

25

2

110

55

 
     

20

3

130

43.3333333

 
     

30

4

160

40

 
     

50

5

210

42

 
     

70

6

280

46.6666667

 
     

90

7

370

52.8571429

 
     

110

8

480

60

 
     

130

9

610

   
     

150

10

760

76

 

 

(b)        How much is total fixed cost at:

            (i)         an output of 0 units ?

            (ii)        an output of 6 units?

(c)        How much is average fixed cost at:

            (i)         an output of 5 units?    

            (ii)        an output of 10 units?  

(d)       How much is total variable cost at an output of 5 units?

(e)        How much is average variable cost at an output of 10 units?

Summary:

A number of units produced for a given fixed cost and variable cost are calculated in the answer through the given table.

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Comments

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