Economics: Given fixed cost of $60, complete the table.

Compute the cost.
Consider a firm that has a fixed cost of $60.00 Complete the table.

1. What is the average fixed cost for 3 units? AFC = FC $20.00 Average Fixed Cost
Q

2. What is the MC for the 4th unit? mariginal cost
MC= TC/Q = change in Total cost
change in output

3. What is the ATC for 5 units? Average total Cost

ATC=TC= FC+ VC=AFC+AVC
Q Q Q

Average fixed cost (AFC) is an economics term to describe the total fixed costs (TFC) divided by the number of units produced. ; TFC = total fixed cost, Q = quantity of units produced.

\(\displaystyle \left[\frac{TFC}{Q}\right] = AFC\)

So, looks like AFC = $20.

Marginal cost is the change in total cost that arises when the quantity produced changes by one unit. Mathematically, the marginal cost (MC) function is expressed as the derivative of the total cost (TC) function with respect to quantity (Q). Note that the marginal cost may change with volume, and so at each level of production, the marginal cost is the cost of the next unit produced.

\(\displaystyle MC = \frac{dTC}{dQ}\)

We don't know the change in TC to determine the MC.