Question

Consider the Table 1 below. Assuming that one unit of the variable input costs $10, fill in the blanks in the last 6 columns of the table below. (10 points)

Table 1: Production costs

Variable input	Output	TFC	TVC	TC	AVC	ATC	MC
0	0		0	220
10	50
20	110
30	180
40	240
50	290
60	330
70	360
80	380

Answer 1

input	Q	TFC	TVC	TC	AVC	ATC	MC
0	0	220	0	220
10	50	220	100	320	2	6.4	2
20	110	220	200	420	1.82	3.82	1.67
30	180	220	300	520	1.67	2.89	1.43
40	240	220	400	620	1.67	2.58	1.67
50	290	220	500	720	1.72	2.48	2
60	330	220	600	820	1.82	2.48	2.5
70	360	220	700	920	1.94	2.56	3.33
80	380	220	800	1020	2.11	2.68	5

TVC= varible input*variable input cost

FC doesnot changes with output. so at 0 quanity, TC=FC. so FC will be same equals to 220 at every level of output.

TC=TVC+TFC

AVC=Vc/Q

ATC=TC/Q

MC=change in TC/change in Q

answered by: anonymous