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Cost Curves Worksheet
This graph and table demonstrate the three short run average cost curves as well as the marginal cost curve. All of the information you need to fill out the entire table is already on this graph. For instance, in the first column, the Fixed costs are just that, fixed. They do not change with output, so the total fixed costs for one unit would be $200. But it would be the same for 2 units or 3. The number 200 would appear in every box in that column.
Total variable costs would be the sum of all variable costs. If the VC for the first unit was $120, the total variable costs for all units up to that point was $120. If the VC was $100 for the second unit, the cost for the first two units would be the sum of the two. Thus the TVC for the first 2 units would be $220. You would add the variable cost of the third unit ($85) to get the total for the first three units. The TVC of the first three units would be $120, plus $100, plus $85, or $305. Make Sure to fill out the table completely using the correct formula. Then plot the curves listed on the assignment sheet.
Attachment:- Cost Curves Worksheet.rar
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