1. The firm's xed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.

i) What are the variable costs of producing 100 units? (1)

ii) Write out the total cost equation assuming variable costs are linear. That may sound hard, but it is just the equation for total costs as a function of output. (1)

iii) What is the marginal cost of the 50th unit of output? (1)

iv) What is the average total cost of the 50th unit of output? (1)

v) What is the average variable cost of the 50th unit of output? (1)

vi) Graph the AVC, AFC, ATC, and the MC. Make sure you label everything.

2. A small firm makes the chairs. Fixed costs are $30. a. Fill in the blank cells in the table: (2) Quantity Variable Fixed Cost Total Cost Average Average Average Marginal Cost ($) ($ ($) Variable Fixed Cost Total Cost Cost ($) Cost ($) ($) ($) O 5 15 10 N 60 80 A 15 30 a -J 150 b. If this firm makes 4 chairs and sells them for $15 a chair, how much profit does it make? (1)