Question 1: Table- Total, Marginal and Average Costs

Total product (Q)	Total fixed cost (TFC)	Total variable cost (TVC)	Total cost (TC)	Marginal cost (MC)	Average fixed cost (AFC)	Average variable cost (AVC	Average total cost (ATC)
0	$50	$0	$50
1			70
2			85
3			95
4			100
5			110
6			130
7			165
8			215
9			275

Question a : Using the table, construct the cost schedule for a firm operating in the short run.

Question b : Graph the average variable cost, average total cost and marginal cost curves.

Question 2 :

Table - Production Possibilities

The Marope Economy has the capacity to produce the goods and services that are outlined in Table 1 below. You are required answer these following questions:

Output (billions of units per year)	A	B	C	D
Consumer goods	480	420	240	0
Consumer services	0	120	240	300

Question a: Draw a Production Possibility Frontier (PPF) and list all efficient points of production.

Question b: Marope Economy wishes to produce 520 billion units of consumer goods. Plot this output on the Frontier and state whether this is an efficient point or not.