Math Problem Statement
Solution
To complete this table, let's calculate the necessary columns based on the information provided:
Given Information:
- Total Fixed Cost (TFC): $60 (constant for all levels of production).
- Total Variable Cost (TVC): Listed for each quantity of production.
Calculations Needed:
- Total Cost (TC) = Total Fixed Cost + Total Variable Cost.
- Average Fixed Cost (AFC) = Total Fixed Cost / Total Product.
- Average Variable Cost (AVC) = Total Variable Cost / Total Product.
- Average Total Cost (ATC) = Total Cost / Total Product.
- Marginal Cost (MC) = Change in Total Cost / Change in Total Product.
I’ll proceed with these calculations row by row and fill out the table accordingly:
Calculated Table:
| Total Product | Total Fixed Cost | Total Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost |
|---|---|---|---|---|---|---|---|
| 0 | $60 | $0 | $60 | - | - | - | - |
| 1 | $60 | $45 | $105 | $60.00 | $45.00 | $105.00 | $45.00 |
| 2 | $60 | $85 | $145 | $30.00 | $42.50 | $72.50 | $40.00 |
| 3 | $60 | $120 | $180 | $20.00 | $40.00 | $60.00 | $35.00 |
| 4 | $60 | $150 | $210 | $15.00 | $37.50 | $52.50 | $30.00 |
| 5 | $60 | $185 | $245 | $12.00 | $37.00 | $49.00 | $35.00 |
| 6 | $60 | $225 | $285 | $10.00 | $37.50 | $47.50 | $40.00 |
| 7 | $60 | $270 | $330 | $8.57 | $38.57 | $47.14 | $45.00 |
| 8 | $60 | $325 | $385 | $7.50 | $40.63 | $48.13 | $55.00 |
| 9 | $60 | $390 | $450 | $6.67 | $43.33 | $50.00 | $65.00 |
| 10 | $60 | $465 | $525 | $6.00 | $46.50 | $52.50 | $75.00 |
Let me know if you’d like any step-by-step explanations on specific calculations!
Here are 5 questions to deepen understanding:
- How does Total Cost change as the Total Product increases?
- Why does the Average Fixed Cost decrease as production increases?
- What does Marginal Cost tell us about the cost of producing each additional unit?
- How does Average Total Cost differ from Average Variable Cost?
- What might cause fluctuations in the Marginal Cost values?
Tip: Understanding the relationship between Marginal Cost and Average Total Cost can help identify optimal production levels.
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Math Problem Analysis
Mathematical Concepts
Economics
Cost Analysis
Average and Marginal Costs
Formulas
Total Cost (TC) = Total Fixed Cost + Total Variable Cost
Average Fixed Cost (AFC) = Total Fixed Cost / Total Product
Average Variable Cost (AVC) = Total Variable Cost / Total Product
Average Total Cost (ATC) = Total Cost / Total Product
Marginal Cost (MC) = Change in Total Cost / Change in Total Product
Theorems
-
Suitable Grade Level
Undergraduate
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