Suppose that your colleague has accidentally spilled coffee on his laptop and th

Question

Suppose that your colleague has accidentally spilled coffee on his laptop and the file containing your firm's cost data has been damaged. Use your knowledge of cost functions to save the day (and your friend's job) by determining the missing oost data. Round your answers to 2 digits after the decimal. Quanity Marginal Cost Fixed CostV Variable Cost Total Cost AFC AVC ATC $45.00 $72.00 $105.00 4 $40.00 $360.00 What is the total cost when producing zero units? What is the marginal cost for the first unit? What is the average total cost of the 3rd unit? What is the average variable cost for the 4th unit? Number Number Number Number Previous Give Up & View Solution Check Answer 0 NextExit

Explanation / Answer

total cost when producing zero units

=40 as it will only have fixed costs

marginal cost for the first unit=(40+45*1)-40=45

average total cost for 3rd unit=(total cost for second unit+marginal cost for third unit)/3

=((40+72)+(105))/3

=72.33

average variable cost for 4th unit=(360-40)/4=80
the above is answer

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