A firm has fixed costs of $110 and a variable cost of the following:

Output (Q)

Total Variable Cost ($)

1

35

2

75

3

110

4

140

5

175

6

215

7

260

8

315

9

390

A.Show AFC, ATC, AVC and MC in a table.

B.Graph the AFC, ATC, AVC, and MC curves.

C.Explain the relationship between the MC curve and the AVC and ATC curves

D.Say fixed cost dropped to $60. Which curves shifted? Why?