Question

4) Use the chart to solve the following:

Calculate the Marginal Cost at Q 100?

Calculate the Marginal Cost at Q 200?

Calculate the Marginal Cost at Q 300?

Calculate the Average Total Cost at Q 100?

Calculate the Average Total Cost at Q 200?

Calculate the Average Total Cost at Q 300?

Q	P=D	TC
0	$10.00	$1,000
100	$20.00	$2,500
200	$30.00	$4,500

300

$40.00

$7,500

Answer 1

MC(n)=(TC(n)-TC(p))/(n-p)
MC(n)=marginal cost of n th unit
TC(n)=Total cost of n units of output
TC(p)=Total cost of p unit of output
here, n>p.

Calculate the Marginal Cost at Q 100?
MC(100)=(2500-1000)/(100-0)
=15

Calculate the Marginal Cost at Q 200?
MC(200)=(4500-2500)/(200-100)
=20

Calculate the Marginal Cost at Q 300?
MC(300)=(7500-4500)/(300-200)
=30
=============
ATC=TC/Q

Calculate the Average Total Cost at Q 100?
ATC(100)=2500/100=25

Calculate the Average Total Cost at Q 200?
ATC(200)=4500/200=22.5

Calculate the Average Total Cost at Q 300?
ATC(300)=7500/300=25