Question

With units of output 500, AVC $15, ATC $35, and MC $10, find total fixed cost, total variable cost, total cost and marginal cost.

Answer 1

$$FC=(ATC-AVC)\times Q=(35-15)\times500=10000$$

$$TC=ATC\times Q=35\times500=175000$$

$$C=MC\times Q=10\times 500=5000$$