Let F be the fixed cost of production, let VC be the variable cost of production

Question

Let F be the fixed cost of production, let VC be the variable cost of production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the average variable cost, and AC, the average cost. Complete the following cost table. (Enter numeric responses rounded to two decimal places.) Output (q) VC MC AFC AVC AC $100 $48 $148 $48 $100.00 $48.00 $148.00 84 184 36 50.00 42.0092.00 2 108 20824 33.33 36.00 100 100 120 12 25.00 30.00 55.00 5 100144 244 2420.00 48.80 100 280 36 16.67 30.00 46.67 7 100 228 328 14.29 32.57 46.86 8 100 288 388 60 36.00 360 460 72 11 40.00 51.11 100 100 444 84 10.00 44.40 10

Explanation / Answer

Answer.)

a.)Fixed cost = $100

Fixed cost remains same as output increases.

b.) Variable Cost = $180

VC = Total Cost - Fixed cost

c.) Total cost =

1.) when output is 4 = $220

2.) When output is 10 = $544

Total cost = variable cost + fixed cost

d.)Marginal Cost = $48

Marginal cost = TC ( at output 7) - TC ( at output 6)

e.)AFC = 100/8=$12.5

AFC = TFC/Q

f.)AVC = 144/5 = $28.8

AVC= TVC/Q

g.)AC=

When output is 3 = 208/3 = $69.33

When output is 10 = 544/10 = $54.4

AC= TC/Q

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