Question

In this summit session and in our reading materials this module week, we are learning about business firms, production, and the costs associated with the practice of business. Now it is time to apply what we are learning! In this activity, you will complete this

Quantity	total cost	total fixed cost	total variable cost	average fixed cost	average total cost	average variable cost	marginal cost
0	30
1	50
2	75
3	150
4	255
5	380
6	525
7	680
8	840
9	1010
10	1200

Please help...

Answer 1

Total Fixed Cost = Total Cost at Zero Production

Total Variable Cost = Total Cost - Total Fixed Cost

Average Total Cost = Total Cost/Quantity of Output

Average Fixed Cost = Total Fixed Cost/Quantity of Output

Average Variable Cost = Total Variable Cost/Quantity of Output

Marginal Cost of N^th unit = Total Cost of N units - Total Cost of (N-1) units

Quantity	Total Cost	Total Fixed Cost	Total Variable Cost	Average Fixed Cost	Average Total Cost	Average Variable Cost	Marginal Cost
0	30	30	0	-	-	-	-
1	50	30	20	30.00	50.00	20.00	20.00
2	75	30	45	15.00	37.50	22.50	25.00
3	150	30	120	10.00	50.00	40.00	75.00
4	255	30	225	7.50	63.75	56.25	105.00
5	380	30	350	6.00	76.00	70.00	125.00
6	525	30	495	5.00	87.50	82.50	145.00
7	680	30	650	4.29	97.14	92.86	155.00
8	840	30	810	3.75	105.00	101.25	160.00
9	1010	30	980	3.33	112.22	108.89	170.00
10	1200	30	1170	3.00	120.00	117.00	190.00

Sample Calculation:

Consider the quantity of output = 6 units,

Total Cost = 525; Average Total Cost = Total Cost/Quantity = 525/6 = 87.5

Total Fixed Cost = Total Cost at Zero Output = 30; Average Fixed Cost = Total Fixed Cost/Quantity = 30/6 = 5

Total Variable Cost = Total Cost - Total Fixed Cost = 525 - 30 = 495; Average Variable Cost = Total Variable Cost/Quantity = 495/6 = 82.5

Marginal Cost of 6th Unit = Total Cost(6 units) - Total Cost(5 units) = 525 - 380 = 145