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3. (Frank, 2010, p. 324) A firm purchases capital and labor in competitive markets at prices of r= 6 and w = 4, respectively.
123456 1. (Frank, 2010, p. 323) Kellys Laundromat Services cost data have been partially entered into the table below. Foll

please show work for how to find answers in each category for table. i have the formulas but i cant figure out what variable cost formula/pattern is
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Answer #1

As per rules and time constraint, only one question can be answered. Kindly ask other question separately. Thank you.

Total cost = fixed cost + variable cost

Marginal cost = change in total cost ÷ change in quantity

Average total cost = total cost ÷ quantity

Average fixed cost = fixed cost ÷ quantity

Average variable cost = variable cost ÷ quantity

1) TC = 24

since there is zero output, variable cost is 0. It us because variable cost depends upon the level of output.

Fixed cost is independent of output

Therefore TC = FC + VC

24 = FC + 0

FC = 24

2) Marginal cost is change in total cost ÷ change in quantity

Change in quantity = 1 - 0 = 1

Change in total cost = TC2 - TC1 = TC2 - 24

MC = (TC2-TC1)/Change in quantity

16 = (TC2 - 24)/1

TC2 = 40

TC = FC + VC

40 = 24 + VC

VC= 16

AVC = 16÷1 = 16

ATC = 40÷1 =40

AFC = 24÷1 = 24

3) TC = FC + VC

TC = 24 + 50

TC = 74

ATC = 74÷2 = 36

AFC = 24÷2 = 12

AVC = 50 ÷2 = 25

MC = (74-40)/(2-1) = 34

4) TC = 108

FC= 24

VC= 108-24 = 84

ATC = 108÷3 = 36

AVC= 84÷3=28

AFC= 24÷3= 8

MC = 108-74/(3-2)= 34

5) MC = TC5 - TC4/Q5-Q4

52 = TC5 - 108

TC5 = 160

TC = FC + VC

160 = 24 + VC

VC = 136

ATC = 160÷4 =40

AVC = 136÷4= 34

AFC = 24÷4= 6

6) AVC = VC ÷ Q

39.2 = VC÷5

VC = 196

TC = VC + FC

TC = 196+24= 220

ATC = 220÷ 5 = 44

MC = (220-160)/(5-4) = 60

AFC = 24÷ 5 = 4.8

7) ATC = TC÷ Q

47= TC÷6

TC = 47×6

TC= 282

VC = TC - FC= 282-24 = 258

AFC= 24÷6 = 4

AVC= 258÷6 = 43

MC= (282-220)/(6-5) = 62

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