1. Using the following cost information, answer the parts that follow below:

Total Product Fixed Cost (TFC) Variable Cost (TVC)

0 $60 $ 0

1 $60 $ 45

2 $60 $ 85

3 $60 $120

4 $60 $150

5 $60 $185

6 $60 $225

7 $60 $270

8 $60 $320

9 $60 $390

10 $60 $465

a. At every total product (TP) level, solve for total cost (TC), average fixed cost (AFC),

average variable cost (AVC), average total cost (ATC), and marginal cost (MC). For the

total product of 0, you can only solve for TC.

1. Graph the TFC, TVC, and TC all on the same graph. Make sure to label the axes.
2. Graph the AFC, AVC, ATC, and MC all on the same graph. Make sure to label the axes.
3. Based upon the numbers from the table above, is this firm is operating in the short-run or

the long-run? How do you know which time period it is operating in?