Assignment: Cost of home
Analyze the costs of your household. The household is a group of people living under the same roof; it could father/mother/sons or it could be three roommates that have rented an apartment. Those people share costs (for example, the rent) and tasks (cleaning).
Indicate, with real or fictitious numbers, which are (in one month):
• Fixed costs
• Variable costs
• Total cost per month
• Average fixed cost (per person)
• Average variable cost (per person)
• Average total cost (per person)
Suppose that the household receives two guests for Christmas and they stay one month. The total variable cost increases in $ 500 in that month. Which is the marginal cost?