Total Cost

Fill in the table attached. Assume TC stands for Total Cost, TFC as Total Fixed Cost, TVC as Total Variable Cost, ATC as Average Total Cost, AFC as Average Fixed Cost, AVC as Average Variable Cost, and MC as Marginal Cost. Then write a paragraph about which level of output would be considered the minimum LRATC.

I have also attached the chapter to find the information as well.

2

>Hint

2

1

0

20 0 – – – 0

1

20 1 21 20 1 1

2

20 4

2

3

20 12 4

4 20 12
5

5

20

20

7 20 24
8 20

20

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Hints
Units of Output	TC	TFC	TVC	ATC	AFC	AVC	MC
											20
	21
	24			12	10		3
32		8
	7
6	16
86
9	360
Notes: The numbers in red are given in the assignment.	The numbers in black are calculated using the information
in your book.
Since TVC = 1 for 1 unit of output, TC for 1 unit of output = 21.
Since MC = change in TC for a 1 unit change in output, MC for the 1 unit of output = 1.
See the calculations on page 156 and 159 in your book.
Now, finish the table.