2. The following table shows data for the simple production function. Capital costs this firm R20 per unit, and labour costs R10 per worker TC AVC ATC MC ТР TFC TVC AFC K 10 0. 10 10 15 10 30 10 4 50 10 5. 75 10 85 10 7. 90 10 92 2.1 From the information in the table, calculate total fixed costs (TFC). Total variable cost (TVC), Total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) 2.2 At what point is average total cost minimized? At what point is average variable cost minimized?
2. The following table shows data for the simple production function. Capital costs this firm R20 per unit, and labour costs R10 per worker TC AVC ATC MC ТР TFC TVC AFC K 10 0. 10 10 15 10 30 10 4 50 10 5. 75 10 85 10 7. 90 10 92 2.1 From the information in the table, calculate total fixed costs (TFC). Total variable cost (TVC), Total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), and marginal cost (MC) 2.2 At what point is average total cost minimized? At what point is average variable cost minimized?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:2. The following table shows data for the simple production function. Capital costs this firm R20
per unit, and labour costs R10 per worker
TC
AVC
ATC
MC
ТР
TFC
TVC
AFC
K
10
0.
10
10
15
10
30
10
4
50
10
5.
75
10
85
10
7.
90
10
92
2.1 From the information in the table, calculate total fixed costs (TFC). Total variable cost (TVC),
Total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC),
and marginal cost (MC)
2.2 At what point is average total cost minimized? At what point is average variable cost
minimized?
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