Answer the question on the basis of the following cost data.

a) Total fixed cost is ___________

b) The average total cost of 5 units of output is_______________

c) The total cost of four units of output is _____________

d) If the firm closed down in the short run and produced zero units of output, it's total the cost would be ___________

e) The marginal cost of the fifth unit of output is ____________

f) The marginal cost curve would intersect the average variable cost curve at about _________
 

  

Transcribed Image Text:

Output 1 2 3 4 5 6 7 8 Average Fixed Cost $50.00 25.00 16.67 12.50 10.00 8.37 7.14 6.25 Average Variable Cost $100.00 80.00 66.67 65.00 68.00 73.33 80.00 87.50 Output 1 2 3 4 5 6 7 8 Average Fixed Cost $50.00 25.00 16.67 12.50 10.00 8.37 7.14 6.25 Average Variable Cost $100.00 80.00 66.67 65.00 68.00 73.33 80.00 87.50

Answer rating: 100% (QA)

a Total Fixed cost is 50 FC AFC x Output 50 x 1 50 b Average Total c... View the full answer