ECO100Y1 Lecture Notes - Lecture 7: Average Variable Cost
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Construct the total cost schedule using data below for a firm operating in the short-run.
Total Output (Q) | Total fixed cost (TFC) | Total variable cost (TVC) | Total cost (TC) | Marginal Cost (MC) | Average fixed cost (AFC) | Average variable cost (AVC) | Average total cost (ATC) |
0 | 50 | 0 | 50 | ||||
1 | 70 | ||||||
2 | 85 | ||||||
3 | 95 | ||||||
4 | 100 | ||||||
5 | 110 | ||||||
6 | 130 | ||||||
7 | 165 | ||||||
8 | 215 | ||||||
9 | 275 |
Construct the cost schedule using the data below for a firm operating in the short run.
Total Output (Q) | Total Fixed Cost (TFC) | Total Variable cost (TVC) | Total Cost (TC) | Marginal Cost (MC) | Average Fixed cost (AFC) | Average Variable Cost (AVC) | Average Total Cost (ATC) |
0 | $50 | ||||||
1 | $70 | ||||||
2 | $85 | ||||||
3 | $95 | ||||||
4 | $100 | ||||||
5 | $110 | ||||||
6 | $130 | ||||||
7 | $165 | ||||||
8 | $215 | ||||||
9 | $275 |
a. Construct the cost schedule using the data below for a firm operating in the short run.
b. Graph the average variable cost, average total cost, and marginal cost curves.
Total Output (Q) | Total Fixed Cost (TFC) | Total Variable cost (TVC) | Total Cost (TC) | Marginal Cost (MC) | Average Fixed cost (AFC) | Average Variable Cost (AVC) | Average Total Cost (ATC) |
0 | $50 | ||||||
1 | $70 | ||||||
2 | $85 | ||||||
3 | $95 | ||||||
4 | $100 | ||||||
5 | $110 | ||||||
6 | $130 | ||||||
7 | $165 | ||||||
8 | $215 | ||||||
9 | $275 |