Question

The cost function of a firm is given below:

Output	0	1	2	3	4
Total cost	100	250	370	550	740

Calculate:

1. AFC
2. AVC
3. MC

Answer 1

Output	TC	FC	AFC	VC	AVC	MC
0	100	100	-	-	-	-
1	250	100	100	150	150	150
2	370	100	50	270	135	120
3	550	100	33.3	450	150	180
4	740	100	25	640	160	190