Question

Table 1. shows the hourly production and Total Cost estimates for a new manufacturing firm wishing to enter the smart phone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values.

Can you show the excel formula ??

			Table 1.
Smart cell phones produced in an hour	Total Cost (TC)	Variable Costs (VC)	Average Variable Costs (AVC)	Average Total Costs (ATC)	Average Fixed Cost (AFC)	Marginal Cost (MC)
		a.	b.	c.	d.	e.
0	$3,200	0	n/a	n/a	n/a	n/a
15	$3,525
30	$3,875
45	$4,250
60	$4,650
75	$5,075
90	$5,525
105	$6,725
120	$8,210
135	$9,950

Answer 1

Working notes:

(1) TFC is the value of TC when Q = 0, i.e. TFC = $3,200

(2) AFC = TFC/Q

(3) VC = TC - TFC

(4) AVC = TVC/Q

(5) ATC = TC/Q

(6) MC = Change in TC / Change in Q

Filled-in table as follows (screenshot of formulas at end).

Q	TC	FC	VC	AVC	ATC	AFC	MC
0	3,200	3,200	0	n/a	n/a	n/a	n/a
15	3,525	3,200	325	21.67	235.00	213.33	21.67
30	3,875	3,200	675	22.50	129.17	106.67	23.33
45	4,250	3,200	1,050	23.33	94.44	71.11	25.00
60	4,650	3,200	1,450	24.17	77.50	53.33	26.67
75	5,075	3,200	1,875	25.00	67.67	42.67	28.33
90	5,525	3,200	2,325	25.83	61.39	35.56	30.00
105	6,725	3,200	3,525	33.57	64.05	30.48	80.00
120	8,210	3,200	5,010	41.75	68.42	26.67	99.00
135	9,950	3,200	6,750	50.00	73.70	23.70	116.00