Cost Data (Excel application)
TC = 20 + 4Q
TC = 20 + 2Q + 0.5Q2
TC = 20 + 4Q - 0.1Q2
Using Excel, calculate all cost curves using a range of quantity from 0 to 15.
Total fixed Cost
Total variable cost
Average total cost
Average fixed cost
Average variable cost
Plot these curves on graphs
Compare the cost curves and discuss their characteristics.
To calculate the average and marginal costs, use the following formulas:
ATC = TC÷Q
AFC = TFC÷Q
AVC = TVC÷Q
MC = change in TC ÷ change in Q
Using the numbers in the tables, plot the different cost curves using Excel graphing features.
The cost numbers are plotted on the vertical axis (y).
The quantity numbers are plotted on the horizontal axis (x).