Question

Complete the following Table:

Quantity
Q
0
1
2
3
4
5
6
7
8
Fixed Cost
FC
$108
Variable Cost
VC
0
12
48
108
192
300
432
588
768
Total Cost
TC FC +VC
Marginal Cost
MC= ΔTC/ΔQ

Answer 1

The student needs to calculate total cost and marginal cost for given quantities. The total cost is found by adding fixed cost to variable cost for each quantity, while marginal cost is the change in total cost divided by the change in quantity.

The student is asking to fill in a table with various economic calculations relating to cost and production. The fixed cost (FC) is given as $108 and variable costs (VC) are provided for different quantities (Q). Total cost (TC) is the sum of fixed cost and variable cost at each level of production, while marginal cost (MC) is the change in total cost divided by the change in quantity. To complete the table, we perform the following steps:

1. For each quantity, add the fixed cost to the variable cost to find the total cost.
2. Calculate the marginal cost by subtracting the total cost at the previous quantity from the total cost at the current quantity and then dividing by the change in quantity (ΔQ), which is 1 in this case.

For example, at Q=1, TC = FC + VC = $108 + $0 = $108, and since there's no previous quantity, MC is not calculable at this point. At Q=2, TC = $108 + $1 = $109, and MC = ($109 - $108) / (Δ2 - Δ1) = $1.