What is this manufacturer fixed cost

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Reference no: EM13319561

The accompanying table shows a car manufacturer's total cost of producing cars.

Quantity of cars TC

0 $500,000

1 540,000

2 560,000

3 570,000

4 590,000

5 620,000

6 660,000

7 720,000

8 800,000

9 920,000

10 1,100,000

a. What is this manufacturer's fixed cost?

b. For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). What is the minimum-cost output?

c. For each level of output, calculate this manufacturer's marginal cost (MC).

d. On one diagram, draw the manufacturer's AVC, ATC, and MC curves.

Reference no: EM13319561

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