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 $)|
Give the values of MC for q = 3, q = 4, q = 5.
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
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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fromChapter 3 / Lesson 12
What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.