Question

The table below refers to the production cost of Syarikat Sonata Enterprise.

Quantity	Fixed Cost	Variable Cost	Total Cost	Average Total Cost	Marginal Cost
0	100	0		-	-
1		20
2		35
3		50		50
4	100		150	37.5	0
5					-10
6	100				-12

Based on the table, answer the following questions.

a)  Complete the table above. (1/2 mark for each correct answer = Total 10 marks)

b)  Calculate the Average Variable Cost (AVC) and Average Fixed Cost (AFC) at 2nd unit of the product. (Marking Scheme = 2 marks for each = 4 marks)

c)  Is the firm operating in the short-run or long run? Give your reason.

d)  Sketch the TC, FC, ATC and MC curves in a diagram. (I mark for each diagram = Total 4 marks)

Answer 1

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