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Homework answers / question archive / Refer to the following table and answer the questions below

Refer to the following table and answer the questions below

Economics

Refer to the following table and answer the questions below.

Q TFC TVC TC AVC MC
0     10   0
1     16   6
2         4
3   12   4  

1) What are total fixed costs?

2) What is the marginal cost of the first unit of output?

3) What is the total cost of 2 units of output?

4) What is the total variable cost of 2 units of output?

5) What is the marginal cost of the third unit of output?

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1) 10

Fixed costs are equal to total cost at output level 0 which in this case is 10.

2) 6

The marginal cost for the first unit of output is given in the marginal cost columns at output level 1 which is 6.

3)20

Total cost at 2 units of output is equal to total cost at 1 unit of output plus marginal cost at 2 units of output which is 16+4=20

4)10

Total variable costs at 2 units of output is the sum of marginal costs at or below 2 units of output which is 6+4=10

5)2

The marginal cost of the third unit of output is the difference between total variable costs between output levels 2 and 3 which is 12-10=2