Cost and revenue diagram


Problem: Construct line charts for the Average Cost (AC), Average Variable Cost (AVC), Marginal Cost (MC), Marginal Revenue (MR) and Average Revenue (AR) on a Cartesian coordinate system.

Q P TR TFC TVC AVC TC AC
 
MR MC
 
0     311,250   0            
10,000         12            
20,000         11.5            
30,000         12.67            
40,000         14.25            
50,000         16            
60,000         17.83            
70,000         19.71            

1. Fill in the blanks in the following table using Excel formulas:                       

P = 50 - 0.00025Q.                                           
                                           
2. Construct line charts for the Average Cost (AC), Average Variable Cost (AVC), Marginal Cost (MC), Marginal Revenue (MR) and Average Revenue (AR) on a Cartesian coordinate system.

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Microeconomics: Cost and revenue diagram
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