Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The following table shows the company's total cost of production at various production quantities.
Fill in the remaining cells of the table.
Quantity
Total Cost
Marginal Cost
Fixed Cost
Variable Cost
Average Variable Cost
Average Total Cost
(Pairs)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars per pair)
(Dollars per pair)
0	60
60
0
—	—
95
1	155
60
95
95
155
65
2	220
60
160
80
110
35
3	255
60
195
65
85
45
4	300
60
240
60
75
50
5	350
60
290
58
70
100
6	450
60
390
65
75

On the following graph, plot Douglas Fur’s average total cost curve (ATC
) using the green points (triangle symbol). Next, plot its average variable cost curve (AVC
) using the purple points (diamond symbol). Finally, plot its marginal cost curve (MC
) using the orange points (square symbol).
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
ATC
AVC
MC
0
1
2
3
4
5
6
200
175
150
125
100
75
50
25
0
COSTS (Dollars per pair)
QUANTITY OF OUTPUT (Pairs of boots)

To fill in the remaining cells of the table, let’s calculate the **marginal cost (MC)**, **fixed cost (FC)**, **variable cost (VC)**, **average variable cost (AVC)**, and **average total cost (ATC)** based on the information provided.

Here’s how we calculate each value:

- **Fixed Cost (FC)**: This is the total cost when the quantity produced is zero. From the table, the total cost when quantity = 0 is 60, so FC = 60 for all quantities.
  
- **Variable Cost (VC)**: This is the total cost minus fixed cost, i.e., VC = Total Cost - Fixed Cost.

- **Marginal Cost (MC)**: This is the change in total cost as quantity increases by one unit, i.e., MC = Change in Total Cost / Change in Quantity.

- **Average Variable Cost (AVC)**: This is the variable cost per unit of output, i.e., AVC = VC / Quantity.

- **Average Total Cost (ATC)**: This is the total cost per unit of output, i.e., ATC = Total Cost / Quantity.

### Let’s complete the table step-by-step:

| Quantity | Total Cost | Marginal Cost | Fixed Cost | Variable Cost | Average Variable Cost | Average Total Cost |
|----------|-------------|---------------|------------|---------------|-----------------------|--------------------|
| 0        | 60          | —             | 60         | 0             | —                     | —                  |
| 1        | 155         | 95            | 60         | 95            | 95                    | 155                |
| 2        | 220         | 65            | 60         | 160           | 80                    | 110                |
| 3        | 255         | 35            | 60         | 195           | 65                    | 85                 |
| 4        | 300         | 45            | 60         | 240           | 60                    | 75                 |
| 5        | 350         | 50            | 60         | 290           | 58                    | 70                 |
| 6        | 450         | 100           | 60         | 390           | 65                    | 75                 |

### Explanation:
1. **Fixed Cost** is constant at 60 for all production levels.
2. **Variable Cost** is calculated as Total Cost - Fixed Cost. For example, for quantity 1: \( VC = 155 - 60 = 95 \).
3. **Marginal Cost** is the change in total cost as output increases by one unit. For example, from quantity 1 to 2: \( MC = 220 - 155 = 65 \).
4. **Average Variable Cost** is calculated as \( AVC = VC / Quantity \). For example, for quantity 2: \( AVC = 160 / 2 = 80 \).
5. **Average Total Cost** is calculated as \( ATC = Total Cost / Quantity \). For example, for quantity 2: \( ATC = 220 / 2 = 110 \).

### Graphing:

- **Average Total Cost (ATC)** Curve: Plot the points (1, 155), (2, 110), (3, 85), (4, 75), (5, 70), (6, 75).
- **Average Variable Cost (AVC)** Curve: Plot the points (1, 95), (2, 80), (3, 65), (4, 60), (5, 58), (6, 65).
- **Marginal Cost (MC)** Curve: Plot the points (1, 95), (2, 65), (3, 35), (4, 45), (5, 50), (6, 100).

### Do you want details on the graph or further explanation on any of the calculations?

#### Relative questions:
1. How does the change in marginal cost affect the average total cost curve?
2. What insights can we gather from the behavior of the marginal cost curve?
3. How can the relationship between ATC and AVC be interpreted as quantity increases?
4. What happens when marginal cost exceeds average total cost?
5. How does the fixed cost affect the overall cost structure as output increases?

#### Tip: 
Marginal cost usually intersects average total cost at its lowest point because it drives the average cost up or down.

Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the table.

Complete the cost analysis table for Douglas Fur's boot production. Learn to calculate total cost, marginal cost, fixed cost, variable cost, average variable cost, and average total cost. This problem applies to college-level economics or business students.

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