Question

Define and know how to calculate the following variables: fixed cost, variable costs, total cost, average fixed cost, average variable cost, average total cost, and marginal cost.

Answer #1

Total fixed cost;

The cost which is incurred once and it does not change with the change in the output or service in short-run is called fixed cost.

Total variable cost.

On the other hand, some costs increases with the increase in the output or services, these costs is known as the variable cost.

Total variable cost = sum of all variable cost.

Total cost is the sum of total variable cost and total fixed cost.

TC= fixed cost + Variable cost

Average variable cost is the average of the total variable cost and it is calculated with the following formula.

AVC= VC/Q

Marginal cost is the addition of the total cost due to producing an extra unit of output. This is calculated with the following formula.

MC= VCn- VCn-1

Average total cost is the average of the total cost and it is calculated with the following formula.

ATC=TC/Q

11. Define the Marginal Cost, Average Total cost, Average
Variable cost, Average fixed cost?

(a) Calculate marginal costs, total costs, average fixed costs,
average variable costs and average total costs, given the following
table. Fixed costs are $100.
Output
Total Variable Cost
Marginal Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total cost
0
0
1
60
2
90
3
110
4
150
5
230
6
450
7
610
8
810
(b) Between what levels of output is there increasing marginal
productivity?
(c) If labour were the only input to this production...

Quantity
Total costs
Total variable costs
Marginal costs
Average total costs
Average variable costs
Average fixed costs
1
$20
2
$6
$5
3
$21
4
$10.50
$2.50
5
$9
Given the table, what is the marginal cost of producing the
fourth unit?
a. $20
b. $10
c. $5
d. $11
e. #31.50

Fixed, Variable and marginal Cost Curves:
If the total cost increase, does this change average (total)
costs?, how about average variable costs?

Given the following total cost function TC(q) = 1000 + 13q.
Find the fixed cost, variable cost, average total cost, and the
marginal cost. How do you know that these costs are in the
short-run? Explain.

Total Output
Total fixed cost
Total Variable cost
Total Cost
Average Fixed Cost
Average variable cost
Average total cost
Marginal cost
0
0
24
0
0
0
8
8
8
38
19
27
9
13
59
I need your help on filling in the rest of the chart.
Thank you very much. If it is not to much trouble can you please
explain how you got the answer. again thank you for your
help.

1- Match the following
Total Cost C = Total Cost - Fixed Cost
Fixed Cost A. = Variable Cost + Fixed Cost
Variable Cost B. = Total Cost - Variable Cost
Economic Costs .D. include Opportunity Cost
2- Match the following
Average fixed cost A= fixed cost / quantity
Average variable cost B= Variable cost / Q
Average total cost C= total cost / quantity
Marginal Cost D= Delta total cost / delta quantity
3-
If Marginal Cost is equal...

What is a fixed input Calculate the total cost and average
total cost based off of the following amounts:
Variable costs = $15,000
Fixed costs = $8,000
Quantity sold = 125

1. Define the terms total fixed costs, total variable costs, and
total costs.

This chapter discusses many types of costs: explicit costs,
implicit costs, total cost, average fixed cost, average variable
cost, and marginal cost. Fill in the type of cost that best
completes each sentence.
ALL POTENTIAL ANSWERS ARE EITHER AVERAGE FIXED/
AVERAGE VARIABLE/ EXPLICIT/ IMPLICIT/ MARGINAL/ OR TOTAL
COST
Profits equal total revenue minus
______________ .
The term __________ refers to costs that
involve direct monetary payment by the firm.
_____________ is falling when
marginal cost is below it and rising...

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