Question

ECON 2200 Assignment 13 - Perfect Competition (10%) Professor: Dean Jenkins mark) Faithe chart below Avg Level Total Price Race Marginal Heren est C F CNC O Cast Costs C 2 Graph the following below. MC, ATC, MR, AVC (4 marks) Page 1 of 2

Answer 1

1) Table

Level of Output	Total fixed cost	Total Variable   cost	Total cost	Marginal cost	Average FC	Average VC	Average TC	level of output	Price	TR	MR	Profit
0	30	0	30	-	-			0	36	0
1	30	20	50	20	30	20	50	1	36	36	36	-14
2	30	35	65	15	15	17.5	32.5	2	36	72	36	7
3	30	47	77	12	10	15.667	25.6667	3	36	108	36	31
4	30	57	87	10	7.5	14.25	21.75	4	36	144	36	57
5	30	69	99	12	6	13.8	19.8	5	36	180	36	81
6	30	84	114	15	5	14	19	6	36	216	36	102
7	30	104	134	20	4.285	14.85	19.14	7	36	252	36	118
8	30	131	161	27	3.75	16.375	20.125	8	36	288	36	127
9	30	167	197	36	3.33	18.55	21.889	9	36	324	36	127
10	30	215	245	48	3	21.5	24.5	10	36	360	36	115

In the above table  

total variable cost and total fixed cost is given.

Total cost (TC)=total variable cost(TVC)+ total fixed cost (TFC)

Marginal cost (MC)=TC_n-TC_n-1  ( where n= level of output)

for example=50-30=20

Average fixed cost (AFC)=TFC÷level of Output

for example: 30/2= 15

Average variable cost(AVC) =TVC÷level of output

for example: 35/2=17.5

Average total cost (ATC) = TC÷ level of output

Total revenue (TR) = price × level of output

for example :36×2= 72

MR= TR_n -TR_n-1

for example = 72-36=36

profit =Total revenue - total cost

for example =72-65=7

2)

Graph for MC,Avc,ATC,MR &MC 60 50 MC ATC AVC 20 MR 10 0 1 2 3 4 5 6 7 8 10 Output LO co 40 O MC,AVC, ATC, MR & MC

the above is the following graph for MC , AVC,ATC MR & MC