Quantity of umbrellas	TFC	TVC	TC
0
1
2
3
4
5		24	34
6		38
7			68
8			98

1. What is the total fixed cost of producing 2 umbrellas?
2. What is the marginal cost of the sixth umbrella?
3. Calculate the average fixed cost of the fifth unit. Show your work.
4. Calculate the total variable cost and the average variable cost of producing 8 units. Show your work.
5. Explain why the average total cost curve and the average variable cost curve move closer together as output expands.

Different between Accounting and Economic Profit. Use the data below to prepare a Statement of Accounting profit vs. Economic profit.

i.Total Revenue 500000

ii. Explicit Costs:

wages and salaries 400000

raw materials 50000

interest on loan 10000

other payments 10000

iii.Implicit Costs:

foregone salary 70000

foregone rent 10000

foregone interest 5000