Question

3. Fill in the chart and draw the MC Quantity MC TC 5.00 US 18181818181 MCATCsa 19.00 23.00 27.50 32.50 1 2 3 4 5 6 7 8 9 10 a 10 4. Draw the ATC, AVC and MC 1 2 3 4 5 6 7 8 9 10 a

explain pls!:)

Answer 1

Quantity	TC $	MC $
0	5.00
1	5.50	0.50
2	6.50	1.00
3	8.00	1.50
4	10.00	2.00
5	12.50	2.50
6	15.50	3.00
7	19.00	3.50
8	23.00	4.00
9	27.50	4.50
10	32.50	5.00
Marginal cost is additional cost due to the production of one more unit.
	MC of 1 st unit is TC for 1 unit less TC for 0 units ( $5.50-$5.00)=$0.50.
	MC of 2nd unit is TC for 2 units less TC for 1 unit ( $6.50-$5.50)=$1.00.
	The rest of MC can be calculated the same way.
Quantity	TC $	FC $	VC $
0	5.00	5.00	0.00
1	5.50	5.00	0.50
2	6.50	5.00	1.50
3	8.00	5.00	3.00
4	10.00	5.00	5.00
5	12.50	5.00	7.50
6	15.50	5.00	10.50
7	19.00	5.00	14.00
8	23.00	5.00	18.00
9	27.50	5.00	22.50
10	32.50	5.00	27.50
Fixed cost is the same for all quantity produced. It is incurred when the output is 0.
Variable costs is total costs minus fixed costs.
Variable costs vary with output.
Quantity	TC $	FC $	VC $	ATC $	AFC $	AVC $
0	5.00	5.00	0.00
1	5.50	5.00	0.50	5.50	5.00	0.50
2	6.50	5.00	1.50	3.25	2.50	0.75
3	8.00	5.00	3.00	2.67	1.67	1.00
4	10.00	5.00	5.00	2.50	1.25	1.25
5	12.50	5.00	7.50	2.50	1.00	1.50
6	15.50	5.00	10.50	2.58	0.83	1.75
7	19.00	5.00	14.00	2.71	0.71	2.00
8	23.00	5.00	18.00	2.88	0.63	2.25
9	27.50	5.00	22.50	3.06	0.56	2.50
10	32.50	5.00	27.50	3.25	0.50	2.75
Average Fixed cost= Total Fixed Cost/Quantity
Average variable cost= Total variable Cost/Quantity
Average total cost= Total Cost/Quantity