Question

 

Output	Total Variable Cost
0	$ 0
1	$ 50
2	$ 90
3	$120
4	$160
5	$220
6	$300
7	$400
8	$520
9	$670
10	$900

 

1. Given the above variable cost data and assuming fixed costs equal the value of 953, create a file using Excel that lists Output, Fixed Cost, Variable Cost, Total Cost, Average Fixed Cost, Average Variable Cost, Average Total Cost, and Marginal Cost. The Excel table should be constructed using formulas wherever calculations are required.
2. Using Excel, plot FC, VC, and TC in Graph A and AFC, AVC, ATC, and MC in Graph B.

Include the out put and Need to find the fixed cost, variable cost,total cost,average fixed cost, average variable cost, Average Total cost, Marginal cost.

Answer 1

Below is the completed table:

Output	TFC	TVC	TC	AFC	AVC	AC	MC
0.00	953.00	0.00	953.00
1.00	953.00	50.00	1003.00	953.00	50.00	1003.00	50.00
2.00	953.00	90.00	1043.00	476.50	45.00	521.50	40.00
3.00	953.00	120.00	1073.00	317.67	40.00	357.67	30.00
4.00	953.00	160.00	1113.00	238.25	40.00	278.25	40.00
5.00	953.00	220.00	1173.00	190.60	44.00	234.60	60.00
6.00	953.00	300.00	1253.00	158.83	50.00	208.83	80.00
7.00	953.00	400.00	1353.00	136.14	57.14	193.29	100.00
8.00	953.00	520.00	1473.00	119.13	65.00	184.13	120.00
9.00	953.00	670.00	1623.00	105.89	74.44	180.33	150.00
10.00	953.00	900.00	1853.00	95.30	90.00	185.30	230.00

• TFC remains the same for all units of output.
• TC = TFC+TVC
• AFC = TFC/output
• AVC = TVC/output
• AC = TC/output
• 
  • So MC for output of 2 units is calcualted as follows:
  • 

Graph B: