A firm has fixed costs of $30.00 and variable costs as indicated in the table below. Complete the table.
Instructions: Round your answers so that you enter no more than 2 decimal places.
Total Product Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost
0 $ $ 0.00 $
1 40.00 $ $ $ $
2 77.50
3 110.00
4 140.00
5 175.00
6 215.00
7 260.00
8 315.00
9 380.00
10 455.00
To complete the table, we need to calculate the missing values based on the given information.
First, we need to calculate the total variable cost (TVC) for each level of total product. The total variable cost can be found by subtracting the total fixed cost from the total cost.
To calculate the total variable cost (TVC), use the equation:
TVC = Total Cost - Total Fixed Cost
Now, let's fill in the table step by step:
Total Product: 0
Total Fixed Cost: $30.00
Total Variable Cost: TVC = Total Cost - Total Fixed Cost = $0.00 - $30.00 = -$30.00 (since the total variable cost cannot be negative, it will be $0.00)
Total Cost: $0.00
Average Fixed Cost: AFC = Total Fixed Cost / Total Product = $30.00 / 0 = undefined (cannot be calculated)
Average Variable Cost: AVC = Total Variable Cost / Total Product = $0.00 / 0 = undefined (cannot be calculated)
Average Total Cost: ATC = Total Cost / Total Product = $0.00 / 0 = undefined (cannot be calculated)
Marginal Cost: Not calculable due to lack of data
Now, let's move on to the remaining levels of total product:
Total Product: 1
Total Fixed Cost: $30.00
Total Variable Cost: Not given
Total Cost: Not given
Average Fixed Cost: Not given
Average Variable Cost: Not given
Average Total Cost: Not given
Marginal Cost: Not given
To calculate the total variable cost for total product (TP) = 1, we subtract the total fixed cost from the given total cost for TP = 1:
TVC for TP = 1 = Total Cost - Total Fixed Cost = $40.00 - $30.00 = $10.00
Now we can fill in the table for TP = 1:
Total Product: 1
Total Fixed Cost: $30.00
Total Variable Cost: $10.00
Total Cost: Not given
Average Fixed Cost: Not given
Average Variable Cost: Not given
Average Total Cost: Not given
Marginal Cost: Not given
Continue this process for the remaining levels of total product by using the same calculation method.