Question

Given the quantity and total cost, calculate for a total fixed cost, the total variable cost, average fixed cost, average total cost, the average variable cost, and marginal cost. You are required to graph the total cost curves as well as the average and marginal cost curves.

Quantity	Total Cost	Total Fixed Cost	Total Variable Cost	Average Fixed Cost	Average Total Cost	Average Variable Cost	Marginal Cost
1	30
2	75
3	150
4	255
5	380
6	525
7	680
8	840
9	1010
10	1200

Answer 1

Following are the answers.

QTY	TC	TFC	TVC	AFC	ATC	AVC	MC
1	30	30	0	30	30	0	--
2	75	30	45	15	37.5	22.5	45
3	150	30	120	10	50	40	75
4	255	30	225	7.5	63.75	56.25	105
5	380	30	350	6	76	70	125
6	525	30	495	5	87.5	82.5	145
7	680	30	650	4.28	97.1	92.85	155
8	840	30	810	3.75	105	101.25	160
9	1010	30	980	3.33	112.5	108.8	170
10	1200	30	1170	3	120	117	190

ATC = TC / QTY i.e. 30/1=30, likewise

MC= TCn - TC(n-1), i.e. there is no MC at qty 1, for qty 2, MC = 75-30=45, likewise

TFC will be constant as the first level of TC i.e. 30

TVC = TC - TFC i.e. 30-30=0, likewise

AFC = TFC / QTY i.e. 30/1=30, 30/2=15, likewise

AVC = TVC / QTY or AC - AFC i.e. 45/2=22.5, like wise

GRAPHS

MC Cunve 200+ 081 160 + MCcueve 120 + 100+ 60 40 T 20 t 4 S 2 3 l 10 outpulr Celt

7C uere 1300 12c0 1000 G00 400 300 T 200 loo 3 10 2 D utptr &

ATC Cuave 160 140+ 1207 loo ATC Cutve 90 7 807 F0 50 + 401 30 20 to 4 t 3 2 Output