Applied Economics - Old Questions
Question Answer Details
10. Based on the table given below, answer the questions:
| Quantity of Output | 0 | 1 | 2 | 3 | 4 | 5 |
| Total Variable Cost | 0 | 20 | 30 | 48 | 90 | 170 |
| Total Cost | 30 | 50 | 60 | 78 | 120 | 200 |
a) Plot the TFC,TVC and the TC curves.
b) Explain the reason for the shape of short-run total cost curves.
c) Calculate the average fixed cost (AFC), the average variable cost (AVC), the average total cost, and the marginal cost (MC).