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micro economics

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Consider a firm that has a fixed cost of $60 a minute.

output=1, Variable Cost= $10 what is the fixed cost?, Total Cost? Marginal cost?, AFC?, AVC? and ATC?

Output is 2?

Can't quite figue it out... thanks

  • micro economics - ,

    I am confused by "$60 a minute". Could you mean fixed cost is simply $60.
    Let me assume just that. Fixed cost=$60.

    So, when output=1, then
    total cost = 10+60=70,
    marginal cost = 10,
    AFC=60/1=60
    AVC=10/1=10
    ATC=70/1=70

    When output=2, (assuming MC=10) then
    Total cost = 20+60=80
    MC = 10
    AFC = 60/2 = 30
    AVC = 20/2 = 10
    ATC = 80/2 = 40

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