Explore BrainMass
Share

Explore BrainMass

    Calculating Total, average and marginal costs

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com October 9, 2019, 10:35 pm ad1c9bdddf
    https://brainmass.com/math/linear-programming/225040

    Attachments

    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.

    $2.19