Question

Calculate the missing values in the cost table for Ag Biz Corp given below.

Cost Table for AgBiz Corp. Total Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost Product $0 $50.00 1 $50.00 $88.00 $50.00 $38.00 $88.00 $38.00 2 $50.00 $72.00 $122.00 $25.00 $61.00 $34.00 3 $50.00 $102.00 $152.00 $16.67 $34.00 $50.67 4 $50.00 $127.00 $12.50 $31.75 $44.25 $25.00 5 $50.00 $208.00 $31.60 $41.60 $31.00 6 $50.00 $191.00 $241.00 $8.33 $31.83 $33.00 $50.00 $230.00 $280.00 $7.14 $32.86 $40.00 $50.00 $276.00 $6.25 $40.75 $46.00 $50.00 $332.00 $382.00 $36.89 $56.00 $50.00 $395.00 $445.00 $5.00 $39.50 $44.50

Answer 1

Q TFC TC T VC 50 50 - 50 0 38 38 72 102 127 AFC AVC ATC MC 50 ... 88 50 38 88 122 I 25 36 61 152 16.6667 34 50.6667 177 12.5 31.75 44.25 31.6 41.6 241 8.33333 31.8333 40.1667 280 7.14286 32.8571 40 6.25 34.5 40.75 382 5.55556 36.8889 42.4444 445 39.5 44.5 158 208 10 50 191 230 276 332 395 326 50 56 50 63

Since TC=TFC+TVC

ATC=TC/Q

AVC=TC/Q

AFC=TFC/Q

MC=VCn-VCn-1