Using the table, answer the following questions:
a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs,
average total costs, and marginal costs.
b. Plot each of the cost curves.
c. At what quantity of output does marginal cos equal average total cost and average variable
cost?
a. Calculations:
●​ TFC: Always $100.
●​ TVC: Calculated as TC−TFCTC - TFCTC−TFC.
●​ AFC: TFC/QTFC / QTFC/Q (e.g., 100 at Q=1Q = 1Q=1).
●​ AVC: TVC/QTVC / QTVC/Q (e.g., 50 at Q=1Q = 1Q=1).
●​ ATC: TC/QTC / QTC/Q (e.g., 150 at Q=1Q = 1Q=1).
●​ MC: ΔTC/ΔQ\Delta TC / \Delta QΔTC/ΔQ (e.g., 50 from Q=0Q = 0Q=0 to Q=1Q =
1Q=1).
b. Cost Curves:
●​ TVC, AFC, AVC, ATC, and MC are plotted. The curves highlight the relationships
between costs and output levels.
c. Intersection Points:
●​ MC = ATC occurs at Q=4Q = 4Q=4 (Both equal 75).
●​ MC = AVC does not occur in the given data set.