FC. VC. TC. 60. 30. 90. = 90. 60. 60. 50. =20. 110. #4. 60. 60. 120. 3. Value of A? Need to find what?. Need TC…. Use AFC x 1 and AVC x 1 to get FC and VC = TC. Fill in rest of FC, then identify that at Q3 AVC x Q = VC … So….20 x 3 = VC of 60.
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3. Value of A? Need to find what?
Use AFC x 1 and AVC x 1 to get FC and VC = TC
Fill in rest of FC, then identify that at Q3 AVC x Q = VC …
So….20 x 3 = VC of 60
4. Total Costs of 3rd unit? Need to find what?
5. Value of B? ……..need to find what?
TC at Q2….same process as above
If TC/Q = ATC; ATC x Q = TC……If VC/Q = AVC; AVC x Q = VC ……difference between ATC and AVC = AFC…so that distance x Q = FC
6. Total fixed costs
7. Total variable cost
8. Total Costs
A. Identify $ value of fixed costs and give one example of fixed cost
D. pt. at which DMP(returns) begin. Explain
B. VC for 4th unit and give one example of VC
=MC is falling through Q3 so MP must be rising. From Q3 to Q4: MC begins to rise which means MP begins to fall
= if TC is 30 and FC is 15, then VC = 15
C. MC for 5th unit
= change TC / change Q