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Write down the fixed cost-variable cost-total cost

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Reference no: EM131301444

Peter's Publishing House is a business which proof reads, edits, prints and binds dissertations. The fixed cost is £16,000 for an office and necessary equipment. Each dissertation involves costs of £4000.  

  • Write down the fixed cost, variable cost and total cost functions and show them on a diagram.
  • Write down the average variable cost and average total cost functions.
  • Calculate the level of output (dissertations) which yields the minimum average total cost and minimum average variable cost.
  • Write down the marginal cost function and discuss how it relates to the AVC and ATC functions. At what level of output does AVC=MC and ATC=MC?

Reference no: EM131301444

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