Question

1. Use a spreadsheet program – preferably Microsoft Excel, but you may use any program you like – to illustrate diagrammatically your answers to the preceding question.

(You should produce a graph that features (a) an average total cost (ATC) curve; (b) a marginal cost (MC) curve; and (c) a line representing the hypothetical price of $9 per ride. The graph should be labeled appropriately, have a reasonable scale on the vertical (cost) axis and horizontal (quantity) axis. When you have completed the graph in your spreadsheet program, copy and paste it here.)

1. Enter your quantity and total cost data into your Excel spreadsheet. You should be starting with a table that looks like this:

Q	TC
0	27
1	30
2	32
3	35
4	38
5	42
6	48
7	57
8	68

2. Create a third column for ATC with the appropriate formula to determine the cell contents – but, after you have done so, ** delete the first cell of the ATC column, where 27/0 is an undefined number **.
3. Create a fourth column for MC, once again using the appropriate formula, and a fifth column for price.
4. Use your cursor to highlight the entire contents of your table, including the column-headers row, and from the “Insert” tab choose “Recommended Charts,” then “Line.”
5. Right-click on the chart that is produced, and then click “Select Data.” Remove the TC curve by selecting it from among the various series and clicking the “-“ sign. Thus you will be left with a graph of only the ATC, MC, and price curves.
6. Click on the Chart Title to label it as you see fit.

Answer 1

Please give ratings it will be appreciable thank you

ATC = TC/ Q

MC = change in TC due one unit increase in output

so

MC (Q=1) = TC ( Q=1) - TC(Q=0) (30 - 27=3)

MC (Q=2) = TC ( Q=2) - TC(Q=1) (32 - 30=3)

MC (Q=3) = TC ( Q=3) - TC(Q=2) (35-32=3)

Q	TC	ATC	MC	P
0	27
1	30	30	3	9
2	32	16	2	9
3	35	11.67	3	9
4	38	9.5	3	9
5	42	8.4	4	9
6	48	8	6	9
7	57	8.14	9	9
8	68	8.5	11	9