Total total avg avg fixed variable total marginal

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Unformatted text preview: iable total cost cost cost cost cost cost cost Labour Output (workers (sweaters (TFC) (TVC) (TC) per day) per day) (dollars per day) (MC) (AFC) (AVC) (ATC) a b c d e f 0 1 2 3 4 5 0 4 10 13 15 16 25 25 25 25 25 25 0 25 50 75 100 125 25 50 75 100 125 150 -- 6.25 6.25 4.17 2.50 8.33 1.92 12.50 1.67 25.00 1.56 -- 6.25 5.00 5.77 6.77 7.81 -- 12.50 7.50 7.69 8.33 9.38 Exercise - Costs Graph the typical curves of the following: Total fixed cost Total variable cost Total cost Graph the typical curves of the following Average fixed cost Average variable cost Average total cost Marginal cost TFC + TVC = TC AFC + AVC = ATC AFC = TFC / Q produced AVC = TVC / Q produced ATC = TC / Q produced MC = TC / Q produced MC = VC / Q produced MC equals ATC and AVC at their minimums If MC < ATC (or AVC), then ATC (or AVC) is decreasing If MC > ATC (or AVC), then ATC (or AVC) is increasing Fill in the Missing Numbers Q 1 2 3 4 5 6 7 8 AFC AVC ATC 160 40 200 80 35 115 53.3 36.7 40 80 32 46 78 26.7 81.7 22.9 68.6 91.4 20 85 105 MC 30 40 50 100 150 200 TVC TFC 40 11...
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