ECON 2000 Chapter : Chapter 8
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A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, the average variable cost, and marginal cost at all relevant levels of output.
Instruction: Round your answers for Average Fixed Cost (AFC) and Average Variable Cost (AVC) to 2 decimal places.
Q |
FC |
VC |
TC |
AFC |
AVC |
ATC |
MC |
0 |
$15,000 |
Ā | Ā |
- |
- |
- |
- |
100 |
Ā | Ā | Ā | Ā | Ā |
300 |
Ā |
200 |
Ā | Ā | Ā | Ā | Ā |
200 |
Ā |
300 |
Ā | Ā | Ā | Ā | Ā |
175 |
Ā |
400 |
Ā | Ā | Ā | Ā | Ā |
225 |
Ā |
500 |
Ā | Ā | Ā | Ā | Ā |
325 |
Ā |
600 |
Ā | Ā | Ā | Ā | Ā |
400 |
Ā |
a. Construct the cost schedule using the data below for a firm operating in the short run.
b. Graph the average variable cost, average total cost, and marginal cost curves.
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
Construct the cost schedule using the data below for a firm operating in the short run. Graph the average variable cost, the average total cost, and marginal cost curves.
Total Output (Q) | Total fixed cost (TFC) (in $) | Total variable cost (TVC) (in $) | Total cost (TC) (in $) | Marginal cost (MC) (in $) | Average fixed cost (AFC) (in $) | Average variable cost (AVC) (in $) | Average total cost (ATC) (in $) |
0 | 50 | 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 |