Answer to Question #33834 in Microeconomics for rach

Question

At zero output Total Costs = $50, at 1 unit TC = $70, at 2 units TC = $85, at 3 units TC = $95, at 4 units TC = $120, at 5 units TC = $160, and at 6 units TC = $240.

a) How much are fixed costs?

b) With which unit does diminishing returns begin?

c) How much are average total costs at 5 units?

d) How much are average fixed costs at 5 units?

e) What is the marginal cost of the 6th unit?

f) How much are average variable costs at 4 units?