Problem 0701 a Complete the following cost schedule by compu

Problem 07-01 (a) Complete the following cost schedule by computing average fixed cost and average variable Instructions: Enter your responses rounded to the nearest whole number. cost. Output Total Cost Average Fixed Cost Average Variable Cost 800 1,050 1,400 1.800 2.300 (b) Complete the following cost schedule by computing average total cost and marginal cost. Instructions: Enter your responses rounded to the nearest whole number. Type here to search 0

Solution

Average Total Cost is minimised when Output is 4

Output =O(i)	Total Cost =TC(i)	Marginal Cost=(TCi-TC(i-1))/(Output(i)-Output(i-1))	Average Total Cost=TC/Output
0	600
1	800	200.00	800.00
2	1050	250.00	525.00
3	1400	350.00	466.67
4	1800	400.00	450.00
5	2300	500.00	460.00