Use the total cost (TC) schedule presented in the table below to calculate theaverage total cost, averagevariable cost, average fixed cost, and marginal cost when output (Q) is equal to 5.
Q 0 1 2 3 4 5 6 7 8 9
TC 5 7 8 10 14 20 28 38
1. If the government imposes a $1 per-unit tax, how do the marginal, average total, and averagevariablecosts change? What if instead the government imposes a $100 per-firm tax?
2. a) Why are short-run marginal cost curves expected to slope upward?
b) If you know that averagecosts are increasing, is the marginal cost
Total Output Cost TFC TVC AFC AVC ATC MC
1. Use the above table to answer the questions listed below.
a. Calculate the total fixed costs, total variablecosts, average fixed costs, averagevariablecosts, average total co
A firm has fixed costs of $60 and variablecosts as indicated in the table on the attached Excel spreadsheet. Complete the table and check the calculations.
Total Product Total Fixed Cost Total Variable Cost
A) If the government imposes a $1 per-unit tax, how do the marginal, average total, and averagevariablecosts change? What if instead the government imposes a $100 per-firm tax? (ASSUME NO CHANGE IN THE AMOUNT OF SALES.)
B) Why are short-run marginal cost curves expected to slope upward?
C) If you know that average cost
1. Given the following total cost function of C (q) = 400Q(squared) - 20Q + 7
Calculate Average cost, Marginal cost, AverageVariable Cost and the output level at which AverageVariable Cost is at a minimum.
a) Are hourly employment costs a fixed or variable cost?
b) How is theaverage total cost curve affected by these changes in costs? In the chart you found, what has been the trend in employment costs since 2002?
c) What is the likely implication of the trend in employment cost on profits?