Production Costs

With the following information about production costs and a fixed cost of $60, answer the questions and prepare the requested graphs:

Total product	Total fixed cost	Total Variable Cost	Total cost	Average fixed costs	Average variable cost	Average total cost	Marginal cost
0		0
1		45
2		85
3		120
4		150
5		185
6		225
7		270
8		325
9		390
10		465

Instructions:

1. Complete the table, review, and verify your calculations.
2. Graph the fixed cost, variable cost, and total cost curves - Graph 1. How does the law of diminishing returns influence the shapes of the variable cost and total cost curves?
3. Draw or graph the average fixed cost, average variable cost, average total cost, and marginal cost curves. Explain the construction and shape of each curve and the relationships among them, and explain why the marginal cost curve cuts the average variable cost and average total cost curves at their minimum points.