Practice Exercise - Cost Computations

Please fill in yellow blanks based on the information given.

Legend: Q: Quantity produced, units FC: Fixed Cost; may also be referred to as Total Fixed Cost (TFC) VC: Variable Cost; may also be referred to as Total Variable Cost (TVC) TC: Total Cost; sum of Fixed Cost and Variable Cost MC: Marginal Cost AFC: Average Fixed Cost AVC: Average Variable Cost ATC: Average Total Cost As you fill in costs, you will see the cost chart starting to show a graphical depiction of costs. Remember that Marginal Cost, Average Fixed Cost, Average Variable Cost, and Average Total Cost are not defined at Q=0.

6731/quizzes/187156/take Question 2 39 pts The cost table below has enough information for you to completely fill out the 26 blank cells in the five rows (associated with output of Q=0, 1, 2, 3, 4). Here is a hint: at Q=4 you are told that AFC is $15. Since AFC=FC/Q and thus FC=AFC*Q, you know that FC must be $15*4=$60. And, of course, FC is the same for all output levels, including zero. Now you have the first column completed! Note: Please round your answers to a whole (integer) number; enter whole (integer) answers only; and do not include a $ (dollar) sign. For example, for $60.00 you will enter 60. Please use the scroll bar to view the entire eight columns of the table. Abbreviations used: Q (quantity), FC (Fixed Cost), VC (Variable Cost), TC (Total Cost), MC (Marginal Cost), AFC (Average Fixed Cost), AVC (Average Variable Cost), ATC (Average Total Cost) Please fill in the blanks based on the information given. O FC VC TC MC AF( O 1 20 2 18 3 114 4 22 15 Quiz saved at 11:10pm Submit Quiz