How to Calculate Marginal Cost, Average Total Cost, Average Variable Cost, and Average Fixed Cost

Given info about fixed and variable costs, and firm productivity:
- We find how to calculate marginal cost.
- We find how to calculate average total cost.
- We find how to calculate average variable cost.
- We find how to calculate average fixed cost.
- We find how to calculate total fixed cost.

More Economics Videos at: https://sites.google.com/site/curtisk...
---------------------
Mark and Jeff operate a small company that produces souvenir footballs. Their fixed cost is $2,000 per month. They can hire workers for $1,000 per worker per month. Their monthly production function for footballs is as given in the accompanying table.
 [ see table in video ]

a. For each quantity of labor, calculate average variable cost (AVC), average fixed cost (AFC), average total cost (ATC), marginal cost (MC).
b. On one diagram, draw the AVC, ATC, and MC curves.
c. At what level of output is Mark and Jeff's average total cost minimized?

from Krugman Wells -- Microeconomics 2nd Ed. -- Chapter 12 (Behind the Supply Curve: Inputs & Costs), Question 10
--------------------------

• #education
• #average_total_cost_atc
• #average_fixed_cost