Question

Q	TC	TVC	TFC	AC	MC	AVC
1	100
2		160
3			20
4				95
5					170
6						120

the following incomplete table shows a firms various costs of producing up to 6 units of output. fill in as much as possible. If you cannot determine the number in a box, explain why it is not possible to do so

Answer 1

Q	TC	TVC	TFC	AC	MC	AVC
1	100	80	20	120	80	80.00
2	180	160	20	110	80	80.00
3			20
4	380	360	20	95		90.00
5	550	530	20	110	170	106.00
6	740	720	20	123	190	120.00

FC=20, so it is constant throughout

AVC = VC/Q, because there is no information on variable cost, AVC cannot be found.

MC = Change in TC/Change in Q, Because there is no TC for output 3 , we cannot calculate MC

AC=TC/Q, no TC is available for Q=3, so ATC is also not possible to be calculated. TC = FC+VC,

because for all output VC is not given, we cannot calculate TC.