A firm’s cost curves are given in the following table. (Photo) Complete the table. If the total fixed cost is RO80, Graph AVC, ATC and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC? Suppose the market price is RO 40, how much will the firm produce in the short run? Calculate the total revenue also. Select one: a. None of the other three answers b. 320 RO c. 350 RO d. 240 RO

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.