1.5. The accompanying table shows a car manufacturer’s total cost of producing cars.

a. What is this manufacturer’s fixed cost?

b. For each level of output, calculate the variable cost (VC).
For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output?

c. For each level of output, calculate this manufacturer’s marginal cost (MC).

d. On one diagram, draw the manufacturer’s AVC, ATC, and MC curves.

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Quantity of cars 0 TC $500,000 123 540,000 560,000 570,000 4 590,000 5 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000