Question

A company has a cost structure described in the table below. Using your knowledge of the types of costs involved in a production process, fill in the blanks in the table.

Quantity produced	Total Cost	Total Fixed Cost	Total Variable Cost	Average Total Cost	Average Fixed Cost	Average Variable Cost	Marginal Cost
0	200		0	-	-	-	-
1				320
2			160
3				130
4							20
5			240
6				80
7			360
8						60
9	842
10							200

Answer 1

Quantity produced	Total cost	Total fixed cost	Total variable cost	Average total cost	Average fixed cost	Average variable cost	Marginal cost
0	200	200	0	0
1	320	200	120	320	200	120	120
2	360	200	160	180	100	80	40
3	390	200	190	130	66.66666667	63.33333333	30
4	410	200	210	102.5	50	52.5	20
5	440	200	240	88	40	48	30
6	480	200	280	80	33.33333333	46.66666667	40
7	560	200	360	80	28.57142857	51.42857143	80
8	680	200	480	85	25	60	120
9	842	200	642	93.55555556	22.22222222	71.33333333	162
10	1042	200	842	104.2	20	84.2	200

TC=TVC+TFC (TC- Total cost, TVC- Total variable cost, TFC- total fixed cost)

AC=, AC=average cost

when AC and TFC is given, TVC= (Q*AC)-TFC

AVC=

AFC=

MC =

when MC is 20 ,

20=

=20, ie change in total cost from previous total cost is 20

ie 390 +20=410