Question

SECTION marginal cost (MC) in the tah. PRINT LAST NAME, FIRST NAME SHORT-RUN COSTS Fall in the missing alufer total cost ), total fixed cost (TFC), total variable bel below, use the data to fill in the blanks. al cost (ATC), average variable cost (AVC), and marginal cost (MC) AFC AVC MC TVC ATC OTC TFC 0 560 SLO IS 2 S120 s Ass 60 $68 Total fixed costs are equal to 1)S COD , regardless of how much output is produced as output is increased. If this firm produces Average fixed costs 2) decreast one unit of output, total cost is 3) $_ total variable cost is 5) S , total fixed cost is 4) S ,and If this firm produces 3 units of output, average total cost is 6) $ average fixed cost is 7)S _, and average variable cost is 8) $_ The marginal cost of the fourth unit of output is 9) $ the fifth unit of output is 10) S_ . and the marginal cost of Chapter 10 Assignments

Answer 1

Q	TC	TFC=TC when Q=0	TVC= TC-TFC	ATC=TV/Q	AFC= TFC/Q	AVC=TVC/Q	MC=ChangeinTC
0	60	60	0	-	-	-	-
1	100	60	40	100	60	40	40
2	120	60	60	60	30	30	20
3	(120+60)=$180	60	120	60	20	40	60
4	(70)(4)= 280	60	220	70	15	55	100
5	(340+60)= 400	60	(68)(5)= 340	80	12	68	120

Total fixed costs are equal to $60, regardless of how much output is produced.

Average fixed cost decrease as output Ian increased .If this firm produces one unit output , total cost is $100, total fixed cost is $60 and total variable cost is $40.

If this firm produces 3 units of output , average total cost is $60 ,average fixed cost is $20 and average variable cost is $40.

The marginal cost of the fourth unit of output is $100 and the marginal cost of the fifth unit of output is $120.