Question

Q              TC           VC          MC          ATC        AVC        AFC        FC=60

1.    80           __           n.a.        __           __           __
2. 9           __           __           __           __           __
3. 99           __           __           __           __           __
4. 108         __           __           __           __           __
5. 12         __           __           __           __           __
6. 15         __           __           __           __           __

1)MC is minimized by making ___Q 2)ATC is minimized by making ___Q

2)AVC is minimized by making ___Q4)AFC is minimized by making ___Q

a)If VC must be less than 35, then maximum Q is __

b)If TC must be less than 150, then maximum Q is __

Answer 1

Fixed cost is 60 so variable cost is total cost - fixed cost. AVC is variable cost / quantity and ATC is total cost / quantity. MC is change in cost / change in quantity

Output	Fixed cost	Variable cost	Total cost	Average Total cost	Average fixed cost	Average variable cost	Marginal cost
0	60	0	60
9	60	20	80	8.9	6.7	2.2	2.2
12	60	39	99	8.3	5.0	3.3	6.3
15	60	48	108	7.2	4.0	3.2	3.0

1) MC is minimized when Q = 9 units

2) ATC is minimized when Q = 15 units

2) AVC is minimized when Q = 9 units

4) AFC is minimized when Q is 15 units

a) If VC must be less than 35, then maximum Q is 9 units

b) If TC must be less than 150, then maximum Q is 15 units