question archive I am having trouble with finding the marginal cost of my assignment and how to graph it all
I am having trouble with finding the marginal cost of my assignment and how to graph it all
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I am having trouble with finding the marginal cost of my assignment and how to graph it all. I included the information as follows for quanties 3 and 4:
quantity: 3, 4
total fixed cost: 30
total cost: 150, 255
total variable cost: 120, 225
average fixed cost 10, 7.5
average total cost: 50, 63.75
average variable cost: 40, 56.25
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| Quantity (Q) | Total fixed cost (TFC) | Total cost (TC) | Total variable cost (TVC)= (TC-TFC) |
Average fixed cost (AFC)= (TFC/Q) |
Average total cost (ATC)= (TC/Q) | Average variable cost (AVC)= (TVC/Q) | Marginal cost (MC)= (?TC/?Q) |
| 3 | 30 | 150 | 120 | 10 | 50 | 30 | |
| 4 | 30 | 255 | 225 | 7.5 | 63.75 | 56 | 105 |
Step-by-step explanation
Marginal cost (MC) is the incremental cost resulting from the production of an extra unit, and it's given by the change in the total cost divided by the change in the quantity. With the information provided, we can only calculate the marginal cost for the 4th unit:
MC= ?TC/?Q
MC= ((255-150)/(4-3))
MC= 105/1
MC= 105
The marginal cost of producing the 4th unit is 105.
