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Relationship between mc atc and avc

02/10/2021 Client: muhammad11 Deadline: 2 Day

Complete the following table and graph AVC, ATC, and MC. The best way to submit this assignment is by cutting and pasting the table into an Excel spreadsheet or a Word Document for the calculations. If you do want or cannot use Excel or Word, you can complete the table and then submit a picture of the table. I want to see, whether you are able to complete the table correctly. Submit the completed table and answers to the questions that follow the table. The way to derive the costs are these basic formulas: Total Cost = Fixed cost + variable cost AVC = Total variable cost/output, ATC = Total cost/output, MC = change in the total cost/ change in output Output Fixed Cost Variable Cost Total Cost Average Average Average Marginal Fixed Variable Total Cost Cost Cost Cost 0.00 10.00 1.00 20.00 2.00 28.00 3.00 33.00 4.00 43.00 5.00 58.00 6.00 78.00 7.00 108.00 8.00 158.00 1. What is the shape of the AVC and ATC curves? What economic law accounts for this shape? How do you know this?
2. What is the shape of the MC curve? Why does it have this shape? How do you know this? 3. What do you know about the values of AVC and ATC at the points where MC crosses them? 4. Is the AVC higher or lower than the ATC? How do you know this? 5. Are the costs in the short run or the long run? How do you know this? 6. Assume the company, above, is in a Perfect Competition Industry: if a product is sold at $20, what will the profits be and how many will be sold at that price? Can the company raise the price? 7. Assume the company, above, is in a Perfect Competition Industry: What would the profit situation be at a price of $30? How many should be sold at that price? 8. Assume the company, above, is in a Perfect Competition Industry: What would the profit situation be at a price of $10? How many should be sold at that price? 9. What are the characteristics of a perfect competition company and industry?

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