Question

1. Given the below table:

Q	FC	VC	TC	AFC	AVC	ATC	MC
0			120
1			180
2			220
3			270
4			360
5			470
6			600

1. Complete the table.
2. Draw the diagram with the curves of TC, VC and FC.
3. Draw the diagram of the curves of ATC, AVC and AFC.

Answer 1

a)

FC=120

VC=TC-FC

AFC=FC/Q

AVC=VC/Q

ATC=TC/Q

MC=change in TC/change in Q

Q	FC	VC	TC	AFC	AVC	ATC	MC
0	120	0	120
1	120	60	180	120	60	180	60
2	120	100	220	60	50	110	40
3	120	150	270	40	50	90	50
4	120	240	360	30	60	90	90
5	120	350	470	24	70	94	110
6	120	480	600	20	80	100	130

b)

FC II 1 2 3 5 6

c)

AFC +-AVC ATC + 0 1 1 2 3 4 5 6 7