1. When ONLY total costs (TC) are known, such as shown in Table 1 below, explain how to calculate each of the following and provide at least one step-by-step example using the data from Table 1:

a. Fixed costs (FC)

b. Variable costs (VC)

c. Average variable costs (AVC)

d. Average total costs (ATC)

e. Average fixed costs (AFC)

f. Marginal costs (MC)

2. Table 1 shows the hourly production and total cost estimates for a new manufacturing firm wishing to enter the smartphone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values.

Table 1

Smart cell Total Variable Average Average Average Marginal phones Cost Costs Variable Total Fixed Cost Cost (MC) produced (TC) (VC) Costs Costs (AFC) in an hour (AVC) (ATC) e. b. C. d. 0 $3.200 (Enter n/a n/a n/a n/a your response here.) 15 $3.525 (Enter Enter Enter your (Enter your (Enter your your your response response response response response here.) here. ) here.) here.) here.) 30 $3,875 (Enter (Enter (Enter (Enter your (Enter your your your your response response response response response here. ) here.) here.) here.) here.) 45 $4.250 (Enter Enter (Enter your (Enter your (Enter your your Your response response response response response here.) here.) here.) here.) here.) 60 $4.650 (Enter (Enter (Enter your (Enter (Enter your your response your response response response here.) response here.) here.) here. ) here.) 75 $5,075 (Enter (Enter (Enter (Enter Enter your your your your response response response response response here.) here.) here.) here.) here.) 90 $5.525 (Enter (Enter (Enter Enter your (Enter your your your response response response response response here. ) here.) here.) here.) here.) 105 $6,725 Enter Enter (Enter (Enter Enter your your YOU your response response response response response here.) here.) here.) here.) here.) 120 $8,210 (Enter (Enter (Enter Enter your (Enter your Tour response response response response response here.) here.) here.) here. ) here.)135 $9.950 Enter Enter Enter Enter your Enter your your Vour response response response response response here. ) here.) here. ) here. ) here. )