Answer to Question #281409 in Microeconomics for Joan Bersales

Question

How to compute the fixed cost,total cost,marshalls cost average variable cost,average fixed cost and the average of total cost of farmer banjo..

Answer 1

1) Fixed costs = Total production costs — (Variable cost per unit x Number of units produced)

2)The total cost is used to combine the variable and fixed costs of producing goods to determine a total. Total cost = (Average fixed cost x average variable cost) x Number of units produced

3) Marshalls cost is a weighted relative of current period to base period sets of prices.

4) Average fixed cost (AFC)= the fixed costs of production (FC) divided by the quantity (Q) of output produced.

5) Average total cost (ATC) is the average cost per unit of output. The formula is, divide the total cost (TC) by the quantity the farmer has produced (Q).