Question one a Fill in the below table and sketch a graph b

Question one a. Fill in the below table and sketch a graph. b. Comment generally on the Marginal Cost and the Average Total Cost Total Fixed Variable Average Marginal Average Fixed Cost Variable cost total cost Cost Average QuantityCost cost 1,105.00 4 1000.00 20.00 5 6 150.00 7 181.00 38.00 8 9 1,264.00 29.3 131.9 10

Solution

Ans 2)

Average Total Cost is decreasing with decreasing rate and Marginal Cost is increasing with increasing rate

Q	FC	VC	TC	AFC	AVC	ATC	MC
4	1000	105	1105	250.00	26.25	276.25
5	1000		1125	200.00	0.00	200.00	20
6	1000	150	1150	166.67	25.00	191.67	25
7	1000	181	1181	142.86	25.86	168.71	31
8	1000		1219	125.00	0.00	125.00	38
9	1000	264	1264	111.11	29.33	140.44	45
10	1000	319	1319	100.00	31.90	131.90	45