Asked by Brittney Britt on Jul 08, 2024
Verified
Fill in the table.Assume the fixed cost is $800.
Marginal Cost
The increase or decrease in the total cost that arises from producing one additional unit of a product or service.
Fixed Cost
Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.
Variable
An element, feature, or factor that is liable to vary or change, often used in the context of experiments or mathematical models.
- Estimate the average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) from the data presented.
Verified Answer
AM
Ahmed Mirza 082Jul 09, 2024
Final Answer :
Variable Total Output Cost Cost AVC ATC MC 1$400$1,200$400$1,200$4027001,50035075030031,1001,900366.67633.3340041,7002,50042562560052,7003,5005407001,00064,4005,200733.33866.671,700\begin{array} { c c c l c c } & \text { Variable } & \text { Total } & & & \\\text { Output } & \text { Cost } & \text { Cost } & \text { AVC } & \text { ATC } & \text { MC } \\1 & \$ \quad 400 & \$ 1,200 & \$ 400 & \$ 1,200 & \$ 40 \\2 & 700 & 1,500 & 350 & 750 & 300 \\3 & 1,100 & 1,900 & 366.67 & 633.33 & 400 \\4 & 1,700 & 2,500 & 425 & 625 & 600 \\5 & 2,700 & 3,500 & 540 & 700 & 1,000 \\6 & 4,400 & 5,200 & 733.33 & 866.67 & 1,700\end{array} Output 123456 Variable Cost $4007001,1001,7002,7004,400 Total Cost $1,2001,5001,9002,5003,5005,200 AVC $400350366.67425540733.33 ATC $1,200750633.33625700866.67 MC $403004006001,0001,700
Learning Objectives
- Estimate the average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) from the data presented.