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Demand and Supply - Fixed Cost

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.

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.