Question

4. Various measures of cost Douglas Fur is a small trofeur hoc in Detroit. The following the shows the company's cost of production at wrios production quantities Fill in the re g ler of the Quantity Total Cost Marginal Cut Pued Cast Variable Cost Average VariableCost Arerage Total Cost % % 88 On the following grapple Del Fur a ge (ATC) are the green plus (riangle ymhol). Next, pleris average varie cor (AVC) cwrw wsing the purple points diamond . Finally margina (MC) we wsing the wrong points are symbol). For ATC and AVC plote the ATC producing pair of h is 5155, you should start w AlCare by placing green poeta (1.155). For MCpler the points between the inter For example, the MC in produc h o , why MC or by placing G 0 5,95 Note: Plot your po w der is why w e nected. Le ts will connect the postcally

Answer 1

Quantity	Total Cost	Marginal cost	Fixed cost	Variable cost	Average variable cost	Average total cost
0	60	NA	60	0	NA	NA
1	155	95	60	95	95	155
2	220	65	60	160	80	110
3	255	35	60	195	65	85
4	300	45	60	240	60	75
5	350	50	60	290	58	70
6	450	100	60	390	65	75

Fixed costs and the total cost are equal at zero units of quantity. and fixed cost remains the same at each level of quantity.

MC = (change in TC) / (change in quantity)

TVC = TC- TFC

AVC = TVC/Q

ATC = TC/Q

200 175 155 150 125 110 100 95 100 85 80 75 75 70 65 65 65 75 60 58 50 45 50 35 25 0 2 5 6 Quantity (pairs of boots) Marginal cost Average variable cost Average total cost Cost (S per pair) LO