ECO 211 Lecture Notes - Lecture 6: Variable Cost, Marginal Revenue, Fixed Cost
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8 Sep 2016
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2. Complete the following cost table:
Q |
FC |
VC |
TC |
MC |
AFC |
AVC |
ATC |
0 |
Ā | Ā | Ā |
- |
- |
- |
- |
1 |
Ā | Ā | Ā |
10 |
Ā | Ā | Ā |
2 |
Ā |
18 |
Ā | Ā |
5 |
Ā | Ā |
3 |
Ā |
23 |
Ā | Ā | Ā | Ā | Ā |
4 |
Ā | Ā | Ā | Ā | Ā |
6.5 |
Ā |
where FC is fixed cost, VC is variable cost, TC is total cost, MC is marginal cost, AFC is average fixed cost, AVC is average variable cost, and ATC is average total cost.
Construct the total cost schedule using data below for a firm operating in the short-run.
Total Output (Q) | Total fixed cost (TFC) | Total variable cost (TVC) | Total cost (TC) | Marginal Cost (MC) | Average fixed cost (AFC) | Average variable cost (AVC) | Average total cost (ATC) |
0 | 50 | 0 | 50 | Ā | Ā | Ā | Ā |
1 | Ā | Ā | 70 | Ā | Ā | Ā | Ā |
2 | Ā | Ā | 85 | Ā | Ā | Ā | Ā |
3 | Ā | Ā | 95 | Ā | Ā | Ā | Ā |
4 | Ā | Ā | 100 | Ā | Ā | Ā | Ā |
5 | Ā | Ā | 110 | Ā | Ā | Ā | Ā |
6 | Ā | Ā | 130 | Ā | Ā | Ā | Ā |
7 | Ā | Ā | 165 | Ā | Ā | Ā | Ā |
8 | Ā | Ā | 215 | Ā | Ā | Ā | Ā |
9 | Ā | Ā | 275 | Ā | Ā | Ā | Ā |
Construct the cost schedule using the data below for a firm operating in the short run.
Total Output (Q) | Total Fixed Cost (TFC) | Total Variable cost (TVC) | Total Cost (TC) | Marginal Cost (MC) | Average Fixed cost (AFC) | Average Variable Cost (AVC) | Average Total Cost (ATC) |
0 | Ā | Ā | $50 | Ā | Ā | Ā | Ā |
1 | Ā | Ā | $70 | Ā | Ā | Ā | Ā |
2 | Ā | Ā | $85 | Ā | Ā | Ā | Ā |
3 | Ā | Ā | $95 | Ā | Ā | Ā | Ā |
4 | Ā | Ā | $100 | Ā | Ā | Ā | Ā |
5 | Ā | Ā | $110 | Ā | Ā | Ā | Ā |
6 | Ā | Ā | $130 | Ā | Ā | Ā | Ā |
7 | Ā | Ā | $165 | Ā | Ā | Ā | Ā |
8 | Ā | Ā | $215 | Ā | Ā | Ā | Ā |
9 | Ā | Ā | $275 | Ā | Ā | Ā | Ā |
Ā