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?
>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 ...
This solution shows the correct formulas to use when calculating a firm's costs and illustrates with concrete examples.