Final answer:
The question focuses on identifying the cost hierarchy level for each cost category and calculating various cost measures. The cost hierarchy includes unit-level, batch-level, product-level, and facility-level costs, while cost calculations involve total cost, average variable cost, average total cost, and marginal cost.
Step-by-step explanation:
Understanding Cost Hierarchies and Calculations
To identify the cost hierarchy level for each cost category, we must understand how costs behave within a business setting. The cost hierarchy classifies costs into different categories based on the ease with which they can be traced to a product and on their relationship to production volume. These categories typically include unit-level, batch-level, product-level, and facility-level costs. However, to complete the cost structure calculations as requested, we'll focus on determining the total cost, average variable cost (AVC), average total cost (ATC), and marginal cost (MC) for a firm.
The total cost (TC) is calculated as the sum of total fixed costs (TFC) and total variable costs (TVC). The formula for this calculation is: TC = TFC + TVC. The average variable cost is found by dividing total variable costs by the quantity of output (Q). Its formula is AVC = TVC / Q.
The average total cost (ATC) is calculated by dividing the total cost by the quantity of output (Q) with the formula ATC = TC / Q. Lastly, marginal cost represents the additional cost of producing one more unit and is calculated by taking the change in total cost and dividing it by the change in quantity (ΔTC/ΔQ).
To apply these cost considerations to taxes based on GDP, which equates to national income, we would look at the different income levels and apply the relevant tax rates or calculations as defined by the prevailing taxation system.