Question

1. Complete the following table accurately.
2. [5 Marks]      Draw the TC, MR, MC in one graph

Q	TFC	TVC	TC	P=MR	TR	MC	Profit
0	$10	0		$15
1		10
2		15
3		20
4		30
5		50
6		80

Answer 1

A.

Q	TFC	TVC	TC(TFC+TVC)	P=MR	TR(Price*Quantity)	MC(Tcn-1-TCn)	PROFITS(TR-TC)
0	$10	0	10	$15	0	10	-10
1	$10	10	20	$15	15	10	-5
2	$10	15	25	$15	30	5	5
3	$10	20	30	$15	45	5	15
4	$10	30	40	$15	60	10	20
5	$10	50	60	$15	75	20	15
6	$10	80	90	$15	90	30	0

TFC is same for all quantity that's why it is $10 for all levels of outputs.

B. TC,MR AND MC in one diagram:

TC is increasing at increasing rate, MR is constant and MC is first constant then decreses , and finally increasing.