In: Economics
A French Winery, Cave des Vignerons de Rasteau is a fine winery. The firm’s fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, average variable cost, and marginal cost at all relevant levels of output.
Q |
FC |
VC |
TC |
AFC |
AVC |
ATC |
MC |
0 |
$10,000 |
--- |
$10,000 |
--- |
--- |
--- |
--- |
10 |
20,000 |
||||||
20 |
25,000 |
||||||
30 |
40,000 |
||||||
40 |
60,000 |
||||||
50 |
100,000 |
||||||
Answer:
Q |
FC ($) |
VC ($) |
TC ($) |
AFC ($) |
AVC ($) |
ATC ($) |
MC ($) |
0 |
10000 |
--- |
10000 |
--- |
--- |
--- |
--- |
10 |
10000 |
10000 |
20000 |
1000 |
1000 |
2000 |
10000 |
20 |
10000 |
15000 |
25000 |
500 |
750 |
1250 |
5000 |
30 |
10000 |
30000 |
40000 |
333.33 |
1000 |
1333.33 |
15000 |
40 |
10000 |
50000 |
60000 |
250 |
1250 |
1500 |
20000 |
50 |
10000 |
90000 |
100000 |
200 |
1800 |
2000 |
40000 |
Calculations:
Q |
FC ($) |
VC ($) |
TC ($) |
AFC ($) |
AVC ($) |
ATC ($) |
MC ($) |
0 |
10000 |
--- |
10000 |
--- |
--- |
--- |
--- |
10 |
10000 |
20000-10000=10000 |
20000 |
10000/10=1000 |
10000/10=1000 |
1000+1000=2000 |
20000-10000=10000 |
20 |
10000 |
25000-10000=15000 |
25000 |
10000/20=500 |
15000/20=750 |
500+750=1250 |
25000-20000=5000 |
30 |
10000 |
40000-10000=30000 |
40000 |
10000/30=333.33 |
30000/30=1000 |
333.33+1000=1333.33 |
40000-25000=15000 |
40 |
10000 |
60000-10000=50000 |
60000 |
10000/40=250 |
50000/40=1250 |
250+1250=1500 |
60000-40000=20000 |
50 |
10000 |
100000-10000=90000 |
100000 |
10000/50=200 |
90000/50=1800 |
200+1800=2000 |
100000-60000=40000 |
Formulas used: