# M3A2

Topics: Costs, Marginal cost, Variable cost Pages: 2 (659 words) Published: August 21, 2013
1. Table 1
Column1| Column 2| Column 3| Column 4| Column 5| Column 6| Column 7| Column 8| Column 9| Column 10| Column 11| Output| Price per unit| Total Fixed Cost| Total Variable Cost| Total Cost| Average Fixed Cost| Average Variable Cost| Average Total Cost| Marginal| Marginal Revenue| Total Revenue| Level| | | | | | | | Cost| | |

0| 165| 125|  \$             -   | \$165.00|  NA|  | \$165.00|  | 1| \$165.00| \$125.00| \$113.00| \$238.00| \$125.00| \$113.00| \$238.00| \$73.00| \$165.00| \$165.00| 2| \$165.00| \$125.00| \$213.00| \$338.00| \$62.50| \$106.50| \$169.00| \$100.00| \$165.00| \$330.00| 3| \$165.00| \$125.00| \$300.00| \$425.00| \$41.67| \$100.00| \$141.67| \$87.00| \$165.00| \$495.00| 4| \$165.00| \$125.00| \$375.00| \$500.00| \$31.25| \$93.75| \$125.00| \$75.00| \$165.00| \$660.00| 5| \$165.00| \$125.00| \$463.00| \$588.00| \$25.00| \$92.60| \$117.60| \$88.00| \$165.00| \$825.00| 6| \$165.00| \$125.00| \$563.00| \$688.00| \$20.83| \$93.83| \$114.67| \$100.00| \$165.00| \$990.00| 7| \$165.00| \$125.00| \$675.00| \$800.00| \$17.86| \$96.43| \$114.29| \$112.00| \$165.00| \$1,155.00| 8| \$165.00| \$125.00| \$813.00| \$938.00| \$15.63| \$101.63| \$117.25| \$138.00| \$165.00| \$1,320.00| 9| \$165.00| \$125.00| \$975.00| \$1,100.00| \$13.89| \$108.33| \$122.20| \$162.00| \$165.00| \$1,485.00| 10| \$165.00| \$125.00| \$1,163.00| \$1,288.00| \$12.50| \$116.30| \$128.80| \$188.00| \$165.00| \$1,650.00| Total Cost = Total Fixed Cost + Total Variable Cost

Average Fixed Cost = Total Fixed Cost/Output Quantity
Average Variable Cost = Total Variable Cost/Output Quantity
Average Total Cost = Total Cost/Output Quantity
Marginal Cost = ∆ in Total Cost/∆ in Output Quantity
Marginal Revenue = ∆ in Total Revenue that results from selling 1 more unit of output. Total Revenue = Price x Quantity Output (McConnell, 2010)
2. The MC=MR rule is “The principle that a firm will maximize its profit (or...