Lesson 3.26 Production and Cost
do you think you know costs? Prove it!
Complete the table using the clues below it.
FC
9.00
9.00
G
0
1
3
4
5
6
MC
9.00
9.00
950
VC
TC
AFC
AVC
Vol XX, Part 4, No. 88, 1984)
1. Average fixed cost for 6 units of output is $9.00
2. Average variable costs for 2 units of output is $30
3. Total cost is increased by $28 when the 3rd unit of output is added

(source: M. Seales, 'So you think you understand the theory of costs, Economics,
ATC
4. Average total cost when 4 units of output are produced is the same as the average total cost
when 3 units are produced
5.
Total cost when 5 units are produced is $258
6.
Variable costs increase by $100 when the 6th unit of output is produced
7. Total cost increases by $8 when the 2nd unit of output is added