Question

From the table given below, calculate the following.
a. Total cost for all the output levels
b. Average fixed cost for all the output levels
c. Average variable cost for all the output levels
d. Marginal Cost for all the output levels
Output Variable cost Fixed cost
8 30 500
16 70 500
24 120 500
32 170 500
40 220 500
48 280 500

Answer 1

Output VC FC TC AFC AVC MC

8 30 500 530 62.5 3.75 -

16 70 500 570 31.25 4.375 5

24 120 500 620 20.8 5 6.25

40 220 500 720 12.5 5.5 6.25

48 280 500 780 10.4 5.8 7.5