Question

Suppose a firm's total cost of production (TC) is TC = 20 MC = 40 What do the firm's average total cost curve, average variable cost curve, and marginal cost curve look like? Draw the following curves from 0 to 5 units of output. 1.) Using the line drawing tool.graph the firm's average total cost curve and label it ATC 2.) Using the line drawing tool, graph the firm's average varia e cost curve and label it AVC 3.) Using the line drawing tool, graph the firm's marginal cost curve and label it "MC Carefully follow the instructions above, and only draw the required objects. Cost (dollars per unit)

suppose a firm's total cost of production (TC) is tc=2Q^2 mc=4Q

Answer 1

Q	TC=2Q2	TFC	TVC=TC-TVC	AVC=TVC/Q	ATC=TC/Q	MC=4*Q
0	0	0	0
1	2	0	2	2	2	4
2	8	0	8	4	4	8
3	18	0	18	6	6	12
4	32	0	32	8	8	16
5	50	0	50	10	10	20

32 30 28 26 24 20 18 ATC 16 14 AVC MC 2 1 4 Q LO NO Cost ($ per unit)

Fixed cost is zero in this case. So, ATC=AVC. It is why ATC and AVC lines are superimposed.