Question

Complete the hypothetical table below and explain in brief, the behaviour of each type of cost.

Answer 1

Answer = Hypothetical table

The table:

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 25

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 15

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 10

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 10

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 20

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 30

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 307 80 150 230 11.43 21.43 40

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 307 80 150 230 11.43 21.43 408 80 300 380 10 37.5 150

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 307 80 150 230 11.43 21.43 408 80 300 380 10 37.5 1509 80 50 580 8.89 55.56 200

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 307 80 150 230 11.43 21.43 408 80 300 380 10 37.5 1509 80 50 580 8.89 55.56 20010 80 900 980 8 90 400

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 307 80 150 230 11.43 21.43 408 80 300 380 10 37.5 1509 80 50 580 8.89 55.56 20010 80 900 980 8 90 400Total cost= Total fixed cost + total variable cost

The table:Quantity Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Marginal cost0 80 0 80 NA NA NA1 80 25 105 80 25 252 80 40 120 40 20 153 80 50 130 26.67 16.67 104 80 60 140 20 15 105 80 80 160 16 16 206 80 110 190 13.33 18.33 307 80 150 230 11.43 21.43 408 80 300 380 10 37.5 1509 80 50 580 8.89 55.56 20010 80 900 980 8 90 400Total cost= Total fixed cost + total variable costAverage fixed cost= total fixed cost

quantity

Average variable cost = total variable cost

quantity

Marginal cost= change into talcost

quantity

Since the fixed cost does not change with the output the average fixed cost descreases as the output increases.

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