1. Complete the following table of various types of cost for a firm in the short run. Assume that Total Fixed Cost equals$100.Table relating Measures of Cost to level of OutputAverageAverageQuantity ofTotal VariableTotalMarginalAverageFixedVariableOutputCostCostCostTotal CostCostCost1$202$353$454$60$806$1057$1408$1859$25010$340What do you notice about the shape of Average Fixed Cost that differs from the other per unit costs such as AverageVariable Cost and Average Total Cost? What is the relationship between Marginal Cost and both Average Variable andAverage Total Cost?

Formulas:- TC=TFC+TVCMC=∆TC∆QAFC=TFCQAVC=TVCQATC=TCQ

1. Complete the following table of various types of cost for a firm in the short run. Assume that Total Fixed Cost equals $100. Table relating Measures of Cost to level of Output Average Average Quantity of Total Variable Total Marginal Average Fixed Variable Output Cost Cost Cost Total Cost Cost Cost 1 $20 2 $35 3 $45 4 $60 5 $80 6 $105 7 $140 8 $185 9 $250 10 $340 What do you notice about the shape of Average Fixed Cost that differs from the other per unit costs such as Average Variable Cost and Average Total Cost? What is the relationship between Marginal Cost and both Average Variable and Average Total Cost?

1. Complete the following table of various types of cost for a firm in the short run. Assume that Total Fixed Cost equals $100. Table relating Measures of Cost to level of Output Average Average Quantity of Total Variable Total Marginal Average Fixed Variable Output Cost Cost Cost Total Cost Cost Cost 1 $20 2 $35 3 $45 4 $60 5 $80 6 $105 7 $140 8 $185 9 $250 10 $340 What do you notice about the shape of Average Fixed Cost that differs from the other per unit costs such as Average Variable Cost and Average Total Cost? What is the relationship between Marginal Cost and both Average Variable and Average Total Cost?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 7PA

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