How would the fixed cost per unit change as output increases

Reference no: EM13213183

Classrooms cleaned per evening 0 3 4 7 8 12 13 16 17 Total cost $100 $200 $240 $300 $330 $400 $440 $500 $600

a) Calculate fixed and variable costs of cleaning 0, 3, 8, and 12 rooms and the average total cost and marginal cost at 3, 8, and 13 rooms and enter them in the table (You can cut and paste the table Quantity of output None 3/ 3rd rooms 8/8th rooms 13/13th rooms Fixed costs Variable costs Average Total Cost Marginal Cost.

b) How would the fixed cost per unit change as output increases? Why?

c) Why does ATC decrease, then increase? Why does it increase slower than MC?

Reference no: EM13213183

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