The cost curves on a graph with quantity on the x-axis the


1. Based on the table below, answer the following questions:

Q     TC       TFC       TVC      MC       AC       AFC       AVC

0

1     500                                   80

2                                              60

3                                              50

4                                              60

5                                              75

6                                              95

7                                              120

8                                              150

9                                              185

(a) Complete the table above, and clearly show the formulae that you used to calculate each column.

(b) Plot the cost curves on a graph with quantity on the x-axis. The first graph should show the Total Cost (T C), the Total Fixed Cost (T F C), and the Total Variable Cost(T V C) curves. The second graph should show the Marginal Cost (MC), the Average Cost (AC), the Average Fixed Cost (AF C), and the Average Variable Cost (AV C)curves. (Note: It might be easier to use Excel to complete the table.)

Solution Preview :

Prepared by a verified Expert
Business Economics: The cost curves on a graph with quantity on the x-axis the
Reference No:- TGS02235316

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)