1 Fill in the table based on the given information output TC

1. Fill in the table based on the given information: output TC TVC TFC ATC AVC AFC MC 1 40 2 56 3 66 4 74 5 80 6 87

Solution

Working notes:

(1) TFC = 12 (which equals TC when output (Q) is zero)

(2) TVC = TC - TFC

(3) ATC = TC/Q

(4) AVC = TVC/Q

(5) AFC = TFC/Q

(6) MC = Change in TC / Change in Q

Q	TC	TVC	TFC	ATC	AVC	AFC	MC
0	12	0	12
1	40	28	12	40	28	12	28
2	56	44	12	28	22	6	16
3	66	54	12	22	18	4	10
4	74	62	12	18.5	15.5	3	8
5	80	68	12	16	13.6	2.4	6
6	87	75	12	14.5	12.5	2	7