Question

Q2: Complete the following table. Show costs to 2 decimal places if they are not whole numbers. Hint: Start with the second row.

               

Q (units)	TFC ($)	AFC ($/unit)	TVC ($)	AVC ($/unit)	TC ($)	ATC ($/unit)	MC ($/unit)
11			$858				$158
12				$90		$140

Q3: Complete the following table. Hint: Start with the first row.

Q (units)	TFC ($)	TVC ($)	TC ($)	AFC ($/unit)	AVC ($/unit)	ATC ($/unit)	MC ($/unit)
0			$1,800	–	–	–	–
1					$600
2							$400
3						$1,200
4		$2,800

Answer 1

Answer 2
The questions can be solved by the following formulae:

TC = TFC + TVC

AFC = TFC/ Q

AVC = TVC/ Q

AC = TC/ Q

MC = TC_Q - TC_Q-1

Q (units)	TFC ($)	AFC ($/unit)	TVC ($)	AVC ($/unit)	TC ($)	ATC ($/unit)	MC ($/unit)
11	$600	$50	$858	$78	$1458	$132.55	$158
12	$600	$50	$1080	$90	$1680	$140	$222

Answer 3

Q (units)	TFC ($)	TVC ($)	TC ($)	AFC ($/unit)	AVC ($/unit)	ATC ($/unit)	MC ($/unit)
0	$1800	$0	$1,800	–	–	–	–
1	$1800	$600	$2400	$1800	$600	$2400	$600
2	$1800	$1000	$2800	$900	$500	$1400	$400
3	$1800	$1800	$3600	$600	$600	$1,200	$800
4	$1800	$2,800	$4600	$450	$700	$1150	$1000