Problem-
A manager in a firm has been assigned a job to find costs at different levels of output. He is provided with the following table and asked to fill up the missing values since there was no information available.
|
Output
|
Total cost
|
Fixed cost
|
Variable cost
|
Average variable cost
|
Average total cost
|
|
1
|
2000
|
500
|
|
|
|
|
2
|
2500
|
|
|
|
|
|
3
|
2800
|
|
|
|
|
|
4
|
3300
|
|
|
|
|
|
5
|
4000
|
|
|
|
|
|
6
|
4800
|
|
|
|
|
|
7
|
6000
|
|
|
|
|
He was also asked to find the marginal cost at output level of 5 units.
Additional Information-
The problem belongs to Economics, particularly to Micro-economics and it is discuss about a scenario where a manager of a firm has to find costs of different levels of output with the given data of total cost and fixed cost.