Question: a) Explain what is meant by fixed cost and identify the firm's fixed cost. (2 marks) (b) Explain what is meant by average variable cost

a) Explain what is meant by fixed cost and identify the firm's fixed cost. (2 marks)

(b) Explain what is meant by average variable cost and calculate the firm's average variable cost schedule. (4 marks)

(Total 10 marks)

a) Explain what is meant by fixed cost and identify the firm's

2. The following table summarises the relationship between a firm's output and its total cost: Output Total Cost (f) 0 100 110 N 140 180 240 Un 310 420 560 840 (a) Explain what is meant by fixed cost and identify the firm's fixed cost. (2 marks) (b) Explain what is meant by average variable cost and calculate the firm's average variable cost schedule. (4 marks) (c) Explain what is meant by average total cost and calculate the firm's average total cost schedule. (4 marks) (Total 10 marks)

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