The table below displays the cost structure (in US Dollars) of the company Toys.

No. of Toys produced per day	Total Variable Costs, $	Total Costs $	Average Fixed Cost $	Average Variable Cost $	Average Total Cost $	Marginal Cost$
0	0
100	160
200	460
300	800
400	1500
500	2500
600	3900
700	6000

• Assume that the fixed cost is $1000, calculate the above costs in the table and explain the difference between average total costs and marginal costs.
• In a graph illustrate the Average Total Cost and Marginal Cost Curves, explain their relationship.
• Assume price is $ 10 and is constant at any quantity). Determine the profit maximizing output and calculate the profit.
• Examine if a firm could decide to produce at a loss on a short run.