A firm’s total fixed cost is $360,000. Construct a table of its total and average fixed costs for output levels varying from zero to 6 units. Draw the corresponding TFC and AFC curves.With the following data, calculate the firm’s AVC and MVC and draw the graphs for TVC, AVC, and MVC. Why is MVC the same as MC?Total Quantity Variable Costs1 $40,0002 80,0003 120,0004 176,0005 240,0006 360,000From the data in Test Yourself Questions 1 and 2, calculate TC and AC for each of the output levels from 1 to 6 units and draw the two graphs.

Output Total fixed cost Average fixed cost = Total fixed cost / quantity 0 3,60,000 - 1 3,60,000…

Answered: A firm’s total fixed cost is $360,000.…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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A firm’s total fixed cost is $360,000. Construct a table of its total and average fixed costs for output levels varying from zero to 6 units. Draw the corresponding TFC and AFC curves.
With the following data, calculate the firm’s AVC and MVC and draw the graphs for TVC, AVC, and MVC. Why is MVC the same as MC?

Total Quantity Variable Costs

1 $40,000

2 80,000

3 120,000

4 176,000

5 240,000

6 360,000

From the data in Test Yourself Questions 1 and 2, calculate TC and AC for each of the output levels from 1 to 6 units and draw the two graphs.

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