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Calculating Total, average and marginal costs

A firm has fixed costs of $60 and variable costs 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
0 $0
1 45
2 85
3 120
4 150
5 185
6 225
7 270
8 325
9 390
10 465

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Solution Preview

Please refer attached file for better clarity and understanding of formulas.

Solution:

Total Product Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost
Q TFC TVC TC=TFC+TVC AFC=TFC/Q AVC=TVC/Q
0 60 $0 $60 - -
1 60 45 ...

Solution Summary

Solution describes the steps and formulas for calculating total fixed cost, total variable cost, total cost, average variable cost, average fixed cost average total costs and marginal costs.

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