Question: Consider the table below, which shows the total fixed costs (TFC) and total variable costs (TVC) for producing specialty bicycles in a small factory with

Consider the table below, which shows the total fixed costs (TFC) and total variable costs (TVC) for producing specialty bicycles in a small factory with a fixed amount of capital.

a. Compute average fixed costs (AFC) for each level of output.
b. Compute average variable costs (AVC) for each level of output.
c. Compute average total cost (ATC) for each level of output. What level of output (per year) is the firm's "capacity"?
d. Plot the AFC, AVC, and ATC curves on a scale diagram with dollars on the vertical axis and the level of output on the horizontal axis.

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