Complete the table below, which represents the production costs for a typical firm. TP is total product (which is also Q). Please note that for the first row (where TP = 0), you cannot calculate the AFC, the AVC, the ATC and the MC, since there are 0 units being produced. However, you are expected to calculate the TC for the first row (where TP =0) and you are also expected to fill in all the other missing numbers in this table. (Round numbers to the nearest tenth.)
Please show your calculations for at least one of the rows.
TP 
TFC 
TVC 
TC 
AFC 
AVC 
ATC 
MC 
0 
$180 
$ 0 
 
 
 
 

1 
27.5 
$27.5 

2 
46.8 
23.4 

3 
63.3 

4 
82.5 
45.0 

5 
106.7 
286.7 

6 
139.7 

7 
181 
51.6 
At what level of output do diminishing returns set in? How do you know?
TFC = 180
TC = TFC + TVC
AFC = TFC/Q
AVC = TVC/Q
ATC = TC/Q
MC = Change in TC /Change in Q
TP  TFC  TVC  TC  AFC  AVC  ATC  MC 
0  180  0  180         
1  180  27.5  207.5  180  27.5  207.5  $27.5 
2  180  46.8  226.8  90  23.4  113.4  19.3 
3  180  63.3  243.3  60  21.1  81.1  16.5 
4  180  82.5  262.5  45  20.6  65.6  19.2 
5  180  106.7  286.7  36  21.3  57.3  24.2 
6  180  139.7  319.7  30  23.3  53.3  33.0 
7  180  181  361  25.7  25.9  51.6  41.3 
At output level of 4th unit MC starts increasing, so diminishing returns sets in
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