Assignment:
Use the following table to answer the questions listed below.
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| Total Output |
Cost |
TFC |
TVC |
AFC |
AVC |
ATC |
MC |
| 0 |
20 |
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| 10 |
40 |
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| 20 |
60 |
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| 30 |
90 |
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| 40 |
120 |
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| 50 |
180 |
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| 60 |
280 |
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a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs.
b. Plot the cost curves. (Hint: Graph total costs curves separate from average costs and marginal cost curves).
c. At what quantity of output does marginal cost = average total cost and quantity of output in which marginal cost = average variable cost.
Source: Boyes, W. and Melvin, M. (2008). Economics. (7th Ed.). Boston, MA: Houghton Mifflin Company.