Using the following table of costs for a firm, what is the marginal cost of producing...

Using the following table of costs for a firm, what is the marginal cost of producing the 3rd unit?

Using the following table of costs, what is the firm's average total cost at 2 units of output?

Q	Fixed Costs	Total Variable Costs
1	200	50
2	200	100
3	200	175
4	200	275

Expert Solution

Answer
Using the following table of costs for a firm, what is the marginal cost of producing the 3rd unit?

MC(n)=TVC(n)-TVC(n-1)
MC(n)=marginal cost of n th unit
TC(n)=Total Variable cost of n units of output
MC(3)=175-100=75
=====
Using the following table of costs, what is the firm's average total cost at 2 units of output?

average total cost =tottal cost /output
total cost =FC+TVC
TC(2)=200+100=300
ATC(2)=300/2=150

Rahul Sunny answered 2 years ago

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