Question

Complete the hypothetical table below and explain in brief, the behaviour of each type of cost. (10 Marks)
Quantity Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Costa Marginal Cost 0
0
1
25
2
40
3
50
4
60
5 100 80
6
110
7
150
8
300
9
500
10
900

Answer 1

Answer:

and types of gear in the short run. All out fixed expense relates to the fixed contributions to the short run generation work. It is a similar when yield (Qnty) is Nil. We can say that TFC stays steady. TFC = TC - TVC TC = TVC + TFC Qnt Total fixed cost Total variable cost Total Cost Average fixed cost Average variable cost Average total cost Marginal cost 0 100 0 100 NA NA NA NA 1 100 25 125 100.00 25.00 125 25 2 100 40 140 50.00 20.00 70 15 3 100 50 150 33.33 16.67 50 10 4 100 60 160 25.00 15.00 40 10 5 100 80 180 20.00 16.00 36 20 6 100 110 210 16.67 18.33 35 30 7 100 150 250 14.29 21.43