Have you learned all there is to know about the cost per unit curves? Check your knowledge with the worksheets below:
1) Complete the table below by calculating the missing data:
| Quantity | Total Fixed Cost | Total Variable Cost | Total Cost | Average Fixed Cost | Average Variable Cost | Average Total Cost |
|---|---|---|---|---|---|---|
| 0 | $300 | $0 | 300 | — | — | — |
| 1 | $75 | 75 | ||||
| 2 | 420 | 150 | ||||
| 3 | $300 | $150 | 450 | 150 | ||
| 4 | $360 | 90 | ||||
| 5 | $600 | 900 | 180 |
2) Graph the per unit (last three columns) cost curves for the table above.
3) Explain what would happen to the per unit cost tables if total fixed cost went up by $50.
4) Explain what would happen if variable cost went up by $30 at every level of production starting with unit 1.
5) Graph the average cost and average variable cost curves from numbers 3 and 4 above.