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4. Answer the following questions: a). If Total Variable Cost (TVC) = $80 and Average Variable...
4. Answer the following questions:
a). If Total Variable Cost (TVC) = $80 and Average Variable Cost (AVC) = 4, then what does Quantity (Q) equal to?
b). If Total Cost (TC) is $40 when Q = 2 and TC is $45 when Q = 3, then what does Marginal Cost (MC) equal to?
c). What does Average Fixed Cost (AFC) equal at Q = 2 if TVC is $15 at Q = 2?
d). Why does the AFC curve get continually closer to the horizontal axis in Exhibit 6 (c) on page 219 of your textbook as the quantity of output increases?
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