Assignment:
Quantity of cars Total Cost 0 $500,000 1 $540,000 2 $560,000 3 $570,000 4 $590,000 5 $620,000 6 $660,000 7 $720,000 8 $800,000 9 $920,000 10 $1,100,000 a.What is this manufacturerâ??s fixed cost? $500.000 b.For each level of o
|
Quantity of cars
|
Total Cost
|
|
0
|
$500,000
|
|
1
|
$540,000
|
|
2
|
$560,000
|
|
3
|
$570,000
|
|
4
|
$590,000
|
|
5
|
$620,000
|
|
6
|
$660,000
|
|
7
|
$720,000
|
|
8
|
$800,000
|
|
9
|
$920,000
|
|
10
|
$1,100,000
|
a.What is this manufacturer's fixed cost?
$500.000
b.For each level of output except zero output, calculate this manufacturer's marginal cost (MC).
c. For each level of output except zero output, calculate the variable cost (VC).
d. For each level of output except zero output, calculate the average variable cost (AVC),
e. For each level of output, calculate the average total cost (ATC),
f. For each level of output except zero output, calculate the average fixed cost (AFC).