Question

Use your knowledge of cost functions to calculate the missed cost data in the accompanying table.

Round your answers to two digits after the decimal.

Quantity	Marginal cost	Fixed cost	Variable cost	Total cost	Average fixed cost	Average variable cost	Average total cost
0	---				---	---	---
1						$45.00
2			$64.00
3	$85.00
4		$20.00		$400.00

What is the total cost when producing zero units?

total cost: $

What is the marginal cost for the first unit?

marginal cost: $

What is the average total cost when producing three units?

average total cost: $

What is the average variable cost when producing four units?

average variable cost: $

Answer 1

The following table can be filled by the following fomulae:

MC = TC_n - TC_N-1

TC = FC + VC

AFC = FC/ n

AVC= VC/ n

ATC= TC/ n

Quantity	Marginal cost	Fixed cost	Variable cost	Total cost	Average fixed cost	Average variable cost	Average total cost
0	---	$20	0	$20	---	---	---
1	$45	$20	$45	$65	$20	$45.00	$65
2	$19	$20	$64.00	$84	$10	$32	$42
3	$85.00	$20	$149	$169	$6.67	$49.67	$56.33
4	$231	$20.00	$380	$400.00	$5	$94	$100

What is the total cost when producing zero units?

total cost: $20

What is the marginal cost for the first unit?

marginal cost: $45

What is the average total cost when producing three units?

average total cost: $56.33

What is the average variable cost when producing four units?

average variable cost: $94