Question One B) Cost out-put relationship. Step 1: Use the following formulas to complete the table: TC = TFC + TVC, AVC = TVC / Q, AFC = TFC / Q, AC = TC / Q or AFC + AVC, MC = ΔTC / ΔQ or ΔTVC / ΔQ.

Question

Asked on May 21, 2026Economics

This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.

Accepted Answer · 2026-05-21T02:48:59.332Z

You're on a roll — Question One B) Cost out-put relationship Step 1: Use the following formulas to complete the table: Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC) Average Variable Cost (AVC) = TVC / Quantity (Q) Average Fixed Cost (AFC) = TFC / Q Average Cost (AC) = TC / Q or AFC + AVC Marginal Cost (MC) = TC Q or TVC Q Step 2: Calculate the values for each column and row. | Unit of output (Q) | Total Fixed Cost (TFC) | Total Variable Cost (TVC) | Total Cost (TC) | Average Variable Cost (AVC) | Average Fixed Cost (AFC) | Average Cost (AC) | Marginal Cost (MC) | |:--------------------:|:-----------------------:|:-------------------------:|:---------------:|:---------------------------:|:-------------------------:|:-----------------:|:------------------:| | 0 | 60 | 0 | 60 | - | - | - | - | | 1 | 60 | 20 | 80 | 20 | 60 | 80 | 20 | | 2 | 60 | 36 | 96 | 18 | 30 | 48 | 16 | | 3 | 60 | 48 | 108 | 16 | 20 | 36 | 12 | | 4 | 60 | 64 | 124 | 16 | 15 | 31 | 16 | | 5 | 60 | 90 | 150 | 18 | 12 | 30 | 26 | | 6 | 60 | 132 | 192 | 22 | 10 | 32 | 42 | Question Two Given: The rate of labor (w) is 3 and the rate of capital (r) is 4. The manufacturer produces 100 pieces as weekly output. Step 1: Use the given rates to calculate the Cost of Labor, Cost of Capital, and Total Cost for each combination of Capital Units (K) and Labor Units (L). Cost of Labor = Labor Units (L) × w Cost of Capital = Capital Units (K) × r Total Cost = Cost of Labor + Cost of Capital Step 2: Calculate the values for each row. | Capital Units (K) | Labor Units (L) | Quantity Output | I. Cost of Labor | II. Cost of Capital | III. Total Cost | |:-------------------:|:---------------:|:---------------:|:----------------:|:-------------------:|:---------------:| | 45 | 10 | 100 | 10 × 3 = 30 | 45 × 4 = 180 | 30 + 180 = 210 | | 28 | 20 | 100 | 20 × 3 = 60 | 28 × 4 = 112 | 60 + 112 = 172 | | 16 | 30 | 100 | 30 × 3 = 90 | 16 × 4 = 64 | 90 + 64 = 154 | | 12 | 40 | 100 | 40 × 3 = 120 | 12 × 4 = 48 | 120 + 48 = 168 | Drop the next question! 📸

Accepted Answer · 2026-05-21T02:48:59.332Z

You're on a roll — Question One B) Cost out-put relationship Step 1: Use the following formulas to complete the table: Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC) Average Variable Cost (AVC) = TVC / Quantity (Q) Average Fixed Cost (AFC) = TFC / Q Average Cost (AC) = TC / Q or AFC + AVC Marginal Cost (MC) = TC Q or TVC Q Step 2: Calculate the values for each column and row. | Unit of output (Q) | Total Fixed Cost (TFC) | Total Variable Cost (TVC) | Total Cost (TC) | Average Variable Cost (AVC) | Average Fixed Cost (AFC) | Average Cost (AC) | Marginal Cost (MC) | |:--------------------:|:-----------------------:|:-------------------------:|:---------------:|:---------------------------:|:-------------------------:|:-----------------:|:------------------:| | 0 | 60 | 0 | 60 | - | - | - | - | | 1 | 60 | 20 | 80 | 20 | 60 | 80 | 20 | | 2 | 60 | 36 | 96 | 18 | 30 | 48 | 16 | | 3 | 60 | 48 | 108 | 16 | 20 | 36 | 12 | | 4 | 60 | 64 | 124 | 16 | 15 | 31 | 16 | | 5 | 60 | 90 | 150 | 18 | 12 | 30 | 26 | | 6 | 60 | 132 | 192 | 22 | 10 | 32 | 42 | Question Two Given: The rate of labor (w) is 3 and the rate of capital (r) is 4. The manufacturer produces 100 pieces as weekly output. Step 1: Use the given rates to calculate the Cost of Labor, Cost of Capital, and Total Cost for each combination of Capital Units (K) and Labor Units (L). Cost of Labor = Labor Units (L) × w Cost of Capital = Capital Units (K) × r Total Cost = Cost of Labor + Cost of Capital Step 2: Calculate the values for each row. | Capital Units (K) | Labor Units (L) | Quantity Output | I. Cost of Labor | II. Cost of Capital | III. Total Cost | |:-------------------:|:---------------:|:---------------:|:----------------:|:-------------------:|:---------------:| | 45 | 10 | 100 | 10 × 3 = 30 | 45 × 4 = 180 | 30 + 180 = 210 | | 28 | 20 | 100 | 20 × 3 = 60 | 28 × 4 = 112 | 60 + 112 = 172 | | 16 | 30 | 100 | 30 × 3 = 90 | 16 × 4 = 64 | 90 + 64 = 154 | | 12 | 40 | 100 | 40 × 3 = 120 | 12 × 4 = 48 | 120 + 48 = 168 | Drop the next question! 📸

Question One B) Cost out-put relationship. Step 1: Use the following formulas to complete the table: TC = TFC + TVC, AVC = TVC / Q, AFC = TFC / Q, AC = TC / Q or AFC + AVC, MC = ΔTC / ΔQ or ΔTVC / ΔQ.

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Question One B) Cost out-put relationship. Step 1: Use the following formulas to complete the table: TC = TFC + TVC, AVC = TVC / Q, AFC = TFC / Q, AC = TC / Q or AFC + AVC, MC = ΔTC / ΔQ or ΔTVC / ΔQ.

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