Question

Table 13-14 quantity of output fixed cost variable cost total cost average fixed cost average variable cost average total cost marginal cost 1 $23 $33 2 $38 3 $70 4 $64 5 $110 6 $118 7 $143 8 $185 refer to table 13-14. what is the average variable cost of producing 3 units of output

Answer 1

I found the correct table and copied its form in an excel file. I also inputted my answers there.

Fixed cost is a fixed amount regardless of the number of units created.
Variable cost is the amount that is directly related to the number of units. As the number of units produced increases, so does the variable cost.

These are the formulas I used in the table I made.
Total Cost = Fixed Cost + Variable Cost
Fixed Cost = Total Cost - Variable Cost
Variable Cost = Total Cost - Fixed Cost

Average Fixed Cost = Fixed Cost / Quantity output
Average Variable Cost = Variable Cost / Quantity output
Average Total Cost = Total Cost / Quantity output     OR  Ave. Fixed Cost + Ave. Variable Cost.

Marginal Cost = Change in Total Cost / Change in Quantity output