Instructions:

1. Fill in names of the costs

Description	Name of cost
A small business signs a contract to rent space where they will produce brooms. Due to the corona virus they temporarily shut down. How would we categorize rent?
Grace decides to leave her job as a bank teller where she earns $45,00 plus benefits to start her own broom company. Her wages and benefits are what type of cost?
TC/(Q=1) = (what cost?)
The market value of all inputs the firms uses in producing the good?
The electricity used to produce a product
What you give up when you take an alternative action?
AVC + AFC = (what cost?)
What are the costs that are included by economists but not by accountants when estimating total costs?
Profits equal Total Revenue minus what cost?

Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

They hire a part time disable worker to fulfill orders.

Output ( Instructional modules per month )	Fixed Costs	Variable Costs	Total Costs	Average Fixed Costs	Average Variable Costs	Average Total Costs	Marginal Costs
0	1080	0	1080	--	--	--	--
1	1080	400	1480	1080	400	1480	400
2	1080	850	1930	540	425	965	450
3	1080	1350	2430	360	450	810	500
4	1080	1900	2980	270	475	745	550
5	1080	2500	3580	216	500	716	600
6	1080	3200	4280	180	533.33	713.33	700
7	1080	4100	5180	154.29	585.71	740	900
8	1080	5400	6480	135	675	810	1300
9	1080	7300	8380	120	811.11	931.11	1900
10	1080	9800	10880	108	980	1088	2500

1.Refer to your completed table. What is the marginal cost of creating the tenth instructional module in a given month?

a. $900

b. $1,250

c. $2,508

d. $3,060

2.Refer to your completed table. What is the average variable cost for the month if 6 instructional modules are produced?

a. $180.00

b. $533.33

c. $700.00

d. $713.33

3.Refer to your completed table. What is the average fixed cost for the month if 9 instructional modules are produced?

a. $108.00

b. $120.00

c. $150.00

d. $811.11

4.Refer to your completed table. How many instructional modules are produced when marginal cost is $1,300?

a. 4

b. 5

c. 7

d. 8

5.Refer to your completed table. One month, Teacher's Helper produced 18 instructional modules. What was the average fixed cost for that month?

a. $60

b. $108

c. $811

d. It can't be determined from the information given.

6.a. On the graph below plot the Marginal Cost Curve based on the data from your table. Correctly label the X and Y axis. Use increments of $100's for the costs.

.

6.b. Briefly give a clear and concise economic explanation for the shape of your plotted Marginal Cost Curve.