Theory of Cost
Theory of Cost
Graph
Total s
Input(L) Output(Q) TVC(L*500) MC Points
(1) (2) (3) (4) (5)
0 $0
A firm’s fixed costs for 0 units of output and its average total cost of
producing different output levels are summarized in the following table.
Complete the table to find the fixed cost, variable cost, total cost, average
fixed cost, average variable cost, and marginal cost at all relevant levels of
output.
solution
0 15000 0 15000
100 15000 15000 30000 150 150 300 150
200 15000 25000 40000 75 125 200 100
300 15000 37500 52500 50 125 175 125
400 15000 75000 90000 37.5 187.5 225 375
500 15000 147500 162500 30 295 325 725
600 15000 225000 240000 25 375 400 775