Respuesta :
Answer:
a. When output is 10, total variable cost is $78.10.
b. When output is 20, average fixed cost is $1.00.
c. When output is 30, average variable cost is $4.69.
d. When output is 40, average total cost is $4.26.
e. When output is 50, marginal cost is $1.21.
Explanation:
Note: Data in this question are merged together. They are therefore sorted before answering the question as follows:
Output Total Cost
0 $20
10 98.1
20 140.8
30 160.7
40 170.4
50 182.5
The explanation of the answers is now given as follows:
a. When output is 10, total variable cost is $
Fixed cost = Total cost when output is 0 = $20
Total variable cost when output is 10 = Total cost when output is 10 - Fixed cost = $98.1 - $20 = $78.10
b. When output is 20, average fixed cost is $
Fixed cost = Total cost when output is 0 = $20
Average fixed cost when output is 20 = Fixed cost / 20 = $20 / 20 = $1.00
c. When output is 30, average variable cost is $
Fixed cost = Total cost when output is 0 = $20.00
Total variable cost when output is 30 = Total cost when output is 30 - Fixed cost = $160.7 - $20 = $140.7
Average variable cost when output is 30 = Total variable cost when output is 30 / 30 = $140.7 / 30 = $4.69
d. When output is 40, average total cost is $
Average total cost when output is 40 = Total cost when output is 40 / 40 = $170.4 / 40 = $4.26
e. When output is 50, marginal cost is $
Marginal cost when output is 5 = (Total cost when output is 50 - Total cost when output is 40) / (50 - 40) = ($182.5 - $170.4) / 10 = $12.10 / 10 = $1.21
