Let's first find the fixed cost (FC):
AFC1=Q1FC,FC=AFC1Q1=$40⋅1=$40.Then, we can find AFC for the output from Q=2 to Q=5:
AFC2=Q2FC=2$40=$20,AFC3=Q3FC=3$40=$13.33,AFC4=Q4FC=4$40=$10,AFC5=Q5FC=5$40=$8.Since, AC=AFC+AVC, we can find AVC for each number of output:
AVC1=AC1−AFC1=$100−$40=$60,AVC2=AC2−AFC2=$36−$20=$16,AVC3=AC3−AFC3=$36−$13.33=$22.67,AVC4=AC4−AFC4=$36−$10=$26,AVC5=AC5−AFC5=$12−$8=$4.Let's find the TC. By the definition,
AC=QTC,TC1=AC1⋅Q1=$100⋅1=$100,TC2=AC2⋅Q2=$36⋅2=$72,TC3=AC3⋅Q3=$36⋅3=$108,TC4=AC4⋅Q4=$36⋅4=$144,TC5=AC5⋅Q5=$12⋅5=$60.By the definition of MC we have:
MC1=Q2−Q1TC2−TC1=2−1$72−$100=−$28,MC2=Q3−Q2TC3−TC2=3−2$108−$72=$36,MC3=Q4−Q3TC4−TC3=4−3$144−$108=$36,MC4=Q5−Q4TC5−TC4=5−4$60−$144=−$84.Finally, we get the following table:
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