Calculating a firm's costs: Formulas and examples
Not what you're looking for?
Calculate the following short-run costs for a firm:
Q = 0, TC = 20: what is the fixed cost?
Q = 1, MC = 20: what is the total cost when Q = 1?
Q = 2, AVC = 15: what is average total cost when Q = 2?
Q = 3, TC = 77: what is marginal cost when Q = 3?
Q = 4, TVC = 76: what is marginal cost when Q = 4?
Purchase this Solution
Solution Summary
This solution shows the correct formulas to use when calculating a firm's costs and illustrates with concrete examples.
Solution Preview
>Q = 0, TC = 20: what is the fixed cost?
When Quantity (Q) = 0, Variable Cost (VC) is also 0, so the Fixed Cost (FC) must be 20.
>Q = 1, MC = 20: what is the total cost when Q = 1?
The Marginal Cost (MC) is the cost of producing an ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.