### Calculation and graphical representation of tfc

Assignment Help Macroeconomics
##### Reference no: EM1315380

A firm has fixed costs of \$60 and variable costs as indicated in the table below. Complete the table.

 Total product Total fixed cost Total variable cost Total cost Average fixed cost Average variable cost Average total cost Marginal cost 0 \$____ \$0 \$____ 1 _____ 45 _____ \$____ \$____ \$____ \$____ 2 _____ 85 _____ _____ _____ _____ _____ 3 _____ 120 _____ _____ _____ _____ _____ 4 _____ 150 _____ _____ _____ _____ _____ 5 _____ 185 _____ _____ _____ _____ _____ 6 _____ 225 _____ _____ _____ _____ _____ 7 _____ 270 _____ _____ _____ _____ _____ 8 _____ 325 _____ _____ _____ _____ _____ 9 _____ 390 _____ _____ _____ _____ _____ 10 _____ 465 _____ _____ _____ _____ _____

a. Graph total fixed cost, total variable cost, and total cost.  Explain how the law of diminishing returns influences the shapes of the total variable-cost and total? Cost curves.

b. Graph AFC, AVC, ATC, and MC.  Explain the derivation and shape of each of these four curves and their relationships to one another.  Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and ATC curves at their minimum points.

c. Explain how the locations of each of the four curves graphed in question 7b would be altered if (1) total fixed cost had been \$100 rather than \$60, and (2) total variable cost had been \$10 less at each level of output.

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