Question

In: Economics

Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves.

INSTRUCTIONS FOR TABLE 1 and Two Graphs-21 points

1) Calculate the Total Cost (TC) for each level of output. (3 points)

2) Calculate the Average Fixed Cost (AFC) for each level of output. (3 points)

3) Calculate the Average Variable Cost (AVC) for each level of output. (3 points)

4) Calculate the Average Total Cost (ATC) for each level of output. (3 points)

5) Calculate the Marginal Cost (MC) for each level of output. (3 points)

Using the data from Table 1 draw two graphs:

Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves. (3 points)

Draw a graph showing the Average Fixed Cost, Average Variable Cost, and Average Total Cost curves and Marginal Cost curve. (3 points)

TABLE 1

(1) (2) (3) (4) (5) (6) (7) (8)

Total Total Total Total Average Average Average Marginal

Product Fixed Variable Cost Fixed Variable Total Cost

Cost Cost Cost Cost Cost

(Q) (TFC) (TVC) (TC) (AFC) (AVC) (ATC) (MC)

0 $100 0 $______ ______

1 100 90 ______ ______ ______ ______ ______

2 100 170 ______ ______ ______ ______ ______

3 100 240 ______ ______ ______ ______ ______

4 100 300 ______ ______ ______ ______ ______

5 100 370 ______ ______ ______ ______ ______

6 100 450 ______ ______ ______ ______ ______

7 100 540 ______ ______ ______ ______ ______

8 100 650 ______ ______ ______ ______ ______

9 100 780 ______ ______ ______ ______ ______

10 100 930 ______ ______ ______ ______ ______

Expert Solution

Q	TFC	TVC	TC	AFC	AVC	AC	MC
0	100	0	100
1	100	90	190	100	90	190	90
2	100	170	270	50	85	135	80
3	100	240	340	33	80	113	70
4	100	300	400	25	75	100	60
5	100	370	470	20	74	94	70
6	100	450	550	17	75	92	80
7	100	540	640	14	77	91	90
8	100	650	750	13	81	94	110
9	100	780	880	11	87	98	130
10	100	930	1030	10	93	103	150

TC=FC+VC
VC=TC-FC
ATC=TC/Q
AVC=VC/Q
AFC=FC/Q
MC=CHANGE IN TC/CHANGE IN Q

Rahul Sunny answered 1 year ago

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