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Solution Library
Calculation Of Different Cost Levels
Question
A manager in a firm has been assigned a job to find costs at different levels of output. He is provided with the following table and asked to fill up the missing values since there was no information available.
|
Output |
Total cost |
Fixed cost |
Variable cost |
Average variable cost |
Average total cost |
|
1 |
2000 |
500 |
|
|
|
|
2 |
2500 |
|
|
|
|
|
3 |
2800 |
|
|
|
|
|
4 |
3300 |
|
|
|
|
|
5 |
4000 |
|
|
|
|
|
6 |
4800 |
|
|
|
|
|
7 |
6000 |
|
|
|
|
He was also asked to find the marginal cost at output level of 5 units.
Summary
The question belongs to Economics, Micro-economics and it discusses about a scenario where a manager of a firm has to find costs of different levels of output with the given data of total cost and fixed cost.
Total Word Count 188
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