Problem:
Calculating Total, average and marginal costs
A firm has fixed costs of $60 and variable costs as indicated in the table on the attached Excel spreadsheet. Complete the table and check the calculations.
| Total Product |
Total Fixed Cost |
Total Variable Cost |
Total Cost |
Average Fixed Cost |
Average Variable Cost |
Average Total Cost |
Marginal Cost |
| 0 |
|
$0 |
|
|
|
|
|
| 1 |
|
45 |
|
|
|
|
|
| 2 |
|
85 |
|
|
|
|
|
| 3 |
|
120 |
|
|
|
|
|
| 4 |
|
150 |
|
|
|
|
|
| 5 |
|
185 |
|
|
|
|
|
| 6 |
|
225 |
|
|
|
|
|
| 7 |
|
270 |
|
|
|
|
|
| 8 |
|
325 |
|
|
|
|
|
| 9 |
|
390 |
|
|
|
|
|