Economics 2150A/B Lecture Notes - Form 10-Q, Marginal Cost, Fixed Capital

• School: Western University
• Department: Economics
• Course: Economics 2150A/B
• Professor: Prof

Document Summary

1 the following incomplete table shows a firm"s various costs of producing up to 6 units of output. Fill in as much of the table as possible. If you cannot determine the number in a box, explain why it is not possible to do so. It helps to rewrite this table adding an extra column for total fixed costs at each level of output. The tfc for q = 2 is just 2*30 = 60, and this is also the tfc value for every other output level. Then for q = 1, we know tc = ac*q = 100, tvc = tc tfc = 40 and the rest is straightforward. Similarly we can fill in the rows for q = 2, 3, 4, and 6. For q = 5, we need to use the fact that mc(6) = tc(6) tc(5) to infer tc(5) = 250.