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						$50.00$50.00
2			$74.00$74.00
3	$105.00$105.00
4		$40.00$40.00		$400.00$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

Q	MC	FC	VC	TC	AFC	AVC
0	-	40	0	40	-	-
1	50	40	50	90	40	50
2	24	40	74	114	20	37
3	105	40	179	219	40/3	179/3
4	181	40	360	400	10	90

1) Q = 0, TC = 40

2) MC1 = 50

3) ATC3 = (40+179)/3 = 73

4) AVC4 = 90