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Complete the table given the formulas MC = ATC / Delta Q and TC = TFC + TVC.

Economics

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Answer

To complete the table, we need to calculate the Total Cost (TC) and Marginal Cost (MC) for each quantity level.

Step-by-step solution

3 steps

The formulas provided are:

TC=FC+VCTC = FC + VC MC=ΔTCΔQMC = \frac{\Delta TC}{\Delta Q}
  1. Calculate Total Cost (TC) for each quantity.

    • For Q=0Q=0: TC=100+0=100TC = 100 + 0 = 100
    • For Q=1Q=1: TC=100+30=130TC = 100 + 30 = 130
    • For Q=2Q=2: TC=100+70=170TC = 100 + 70 = 170
    • For Q=3Q=3: TC=100+120=220TC = 100 + 120 = 220
    • For Q=4Q=4: TC=100+180=280TC = 100 + 180 = 280
  2. Calculate Marginal Cost (MC) for each quantity.

    Marginal Cost is the change in total cost when quantity increases by one unit.

    • For Q=1Q=1: MC=130−1001−0=301=30MC = \frac{130 - 100}{1 - 0} = \frac{30}{1} = 30
    • For Q=2Q=2: MC=170−1302−1=401=40MC = \frac{170 - 130}{2 - 1} = \frac{40}{1} = 40
    • For Q=3Q=3: MC=220−1703−2=501=50MC = \frac{220 - 170}{3 - 2} = \frac{50}{1} = 50
    • For Q=4Q=4: MC=280−2204−3=601=60MC = \frac{280 - 220}{4 - 3} = \frac{60}{1} = 60
  3. Complete the table with the calculated values.

    QFCVCTCMC01000100−1100301303021007017040310012022050410018028060\begin{array}{|c|c|c|c|c|} \hline Q & FC & VC & TC & MC \\ \hline 0 & 100 & 0 & \textbf{100} & - \\ 1 & 100 & 30 & \textbf{130} & \textbf{30} \\ 2 & 100 & 70 & \textbf{170} & \textbf{40} \\ 3 & 100 & 120 & \textbf{220} & \textbf{50} \\ 4 & 100 & 180 & \textbf{280} & \textbf{60} \\ \hline \end{array}
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