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Given the table below. This table displays the costs and total revenue (in $) of a perfectly...

Question:

Given the table below. This table displays the costs and total revenue (in $) of a perfectly competitive firm. Also, the market price is currently $500.

q (output per hour) VC (in $) TC (in $) MC (in $) AVC (in $) ATC (in $) TR (in $)
0 0 1,080 ----- ----- -----
1 400 1,480 400 400
2 450 965
3 1,350 2,430
4 1900 475
5 2,500 3,580
6 3,200 700

Give the values of MC for q = 3, q = 4, q = 5.

Marginal Cost:

The marginal cost can be derived using the total variable cost function. The upward sloping part of the marginal cost curve is referred to as the supply function of a firm. The area below the curve is used to show the total variable cost of the firm.

Answer and Explanation: 1

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As the variable cost is zero at zero units, so the total cost is equal to the fixed cost, i.e. $1,080.

The formulas used to calculate the values in...

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Marginal Cost: Definition, Equation & Formula

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Chapter 3 / Lesson 12
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What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.


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