Explore BrainMass

Explore BrainMass

    Demand and Supply - Fixed Cost

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Complete the following table. What is the value of fixed cost?

    Output Total Cost Marginal Cost Average Cost
    0 $100
    1 $110
    2 $130
    3 $165
    4 $220
    5 $300

    On a graph, depict marginal cost and average cost using the data from above. Indicate minimum average cost on the graph.

    © BrainMass Inc. brainmass.com October 10, 2019, 5:17 am ad1c9bdddf

    Solution Preview

    See the attached file for the completed table.

    Marginal Cost = (Change ...

    Solution Summary

    Given a table of a firm's total costs at various levels of output, this solution shows how to calculate fixed cost, marginal cost and average cost. The cost curves are illustrated with a graph.