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Q FC VC TC MC AFC AVC АТС 1 300 100 105 270 120 4 40 77.5 5 480 510 15 23

Q FC VC TC MC AFC AVC АТС 1 300 100 105 270 120 4 40 77.5 5 480 510 15 23

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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The table presented is a cost analysis for different quantities (Q) produced. Here is a detailed breakdown of the values given in each column: 1. **Q (Quantity):** Represents the number of units produced. - Ranges from 0 to 6. 2. **FC (Fixed Cost):** Costs that do not change with the level of output. - These values are not provided in the table. 3. **VC (Variable Cost):** Costs that vary with the level of output. - For 2 units, VC is 300. - For 3 units, VC is 270. - For 5 units, VC is 480. - For 6 units, VC is 510. 4. **TC (Total Cost):** The sum of fixed and variable costs. - For 2 units, TC is 300. 5. **MC (Marginal Cost):** The additional cost of producing one more unit. - For 2 units, MC is 100. - For 4 units, MC is 40. 6. **AFC (Average Fixed Cost):** Fixed Cost per unit. - For 5 units, AFC is 15. 7. **AVC (Average Variable Cost):** Variable Cost per unit. - For 2 units, AVC is 105. - For 4 units, AVC is 77.5. 8. **ATC (Average Total Cost):** Total Cost per unit. - For 2 units, ATC is 120. The table does not provide the fixed costs explicitly; hence, some cells are left empty. The table is designed to help understand the relationship between production levels and costs, such as variable costs, marginal costs, and average costs.
Transcribed Image Text:The table presented is a cost analysis for different quantities (Q) produced. Here is a detailed breakdown of the values given in each column: 1. **Q (Quantity):** Represents the number of units produced. - Ranges from 0 to 6. 2. **FC (Fixed Cost):** Costs that do not change with the level of output. - These values are not provided in the table. 3. **VC (Variable Cost):** Costs that vary with the level of output. - For 2 units, VC is 300. - For 3 units, VC is 270. - For 5 units, VC is 480. - For 6 units, VC is 510. 4. **TC (Total Cost):** The sum of fixed and variable costs. - For 2 units, TC is 300. 5. **MC (Marginal Cost):** The additional cost of producing one more unit. - For 2 units, MC is 100. - For 4 units, MC is 40. 6. **AFC (Average Fixed Cost):** Fixed Cost per unit. - For 5 units, AFC is 15. 7. **AVC (Average Variable Cost):** Variable Cost per unit. - For 2 units, AVC is 105. - For 4 units, AVC is 77.5. 8. **ATC (Average Total Cost):** Total Cost per unit. - For 2 units, ATC is 120. The table does not provide the fixed costs explicitly; hence, some cells are left empty. The table is designed to help understand the relationship between production levels and costs, such as variable costs, marginal costs, and average costs.
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