Question

Complete the table

3. Fill in the missing entries in the following table (5 pts): AVERAGE FIXED COST AVERAGE VARIABLE COST MARGINAL COST OUTPUT AVERAGE TOTAL COST 160 95

Answer 1

The major point over here to take the case when 0 units is produced with the help of MC given when 1 unit is produced.

MC_{N =} TC_n - TC_N-1

Average fixed cost = Total cost / Output

Average variable cost = Variable cost / Output

Average Total cost = Total cost / Output

Total cost = Fixed Cost + Variable Cost

Output	Average Total Cost	Total Cost	Average Fixed Cost	Fixed Cost	Average Variable Cost	Variable Cost	Marginal Cost
0	-	120	-	120	-	0	-
1	160	160	120	120	40	40	40
2	95	190	60	120	35	70	30
3	70	210	40	120	30	90	20
4	55	220	30	120	25	100	10
5	47	235	24	120	23	115	15
6	43	258	20	120	23	138	23