Question

Quantity	Total Revenue	Marginal Revenue	Total Cost	Marginal Cost	Fixed Costs	ATC	Average Fixed Costs	Average Variable Costs
0	0	-	10	-	10	-	-	-
1	8		24	14		24
2	16		34	10		17
3	24		42	8		14
4	32		49	7		12.25
5	40		57	8		11.4
6	48		67	10		11.17
7	56		81	14		11.57
8	64		99	18		12.38
9	72		123	24		13.67

f. You have now removed the fixed costs from your decision making process. At the profit maximizing output level you chose in (b), what is the total variable cost?

Answer 1

Q	TR	MR=Change in TR	TC	MC=change in TC	FC=TC when Q=0	ATC=TC/Q	AFC=FC/Q	TVC=TC-FC	AVC=TVC/Q
0	0	-	10	-	10	-	-	0	-
1	8	8	24	14	10	24	10	14	14
2	16	8	34	10	10	17	5	24	12
3	24	8	42	8	10	14	3.33	32	10.67
4	32	8	49	7	10	12.25	2.5	39	9.75
5	40	8	57	8	10	11.4	2	47	9.4
6	48	8	67	10	10	11.17	1,67	57	9.5
7	56	8	81	14	10	11.57	1.43	71	10.14
8	64	8	99	18	10	12.38	1.25	89	11.12
9	72	8	123	24	10	13.67	1.11	113	12.55

If fixed are now removed from the decision making process ,then total variable cost is equal to the total cost.