Question

Output	FC	VC	TC	AFC	AVC	ATC	MC
0	500	0
1	500	200
2	500	310
3	500	370
4	500	500
5	500	680
6	500	910
7	500	1320

1.Complete the Table and Graph the AFC, AVC, ATC and MC curves on graph paper 2. What is the shut down point? 3. What is the break even point?

Answer 1

Output	FC	VC	TC	AFC	AVC	ATC	MC
0	500	0	500	-	-	-	-
1	500	200	700	500	200	700	200
2	500	310	810	250	155	405	110
3	500	370	870	166.67	123.33	290	60
4	500	500	1000	125	125	250	130
5	500	680	1180	100	136	236	180
6	500	910	1410	63.33	151.67	215	230

  7 500 1320 1820 71.43 188.57 260 410

2. At shut down point, AVC is minimum which occurs at an output level of 3 units.

3. At break even point ATC is minimum which occurs at an output level of 6 units.

Thanks!