Intro. to Microeconomics: Econ 201 Lane Community College

Using graph paper will make this assignment much easier. Give complete answers.

1) A firm has fixed costs of $120 and variable costs as listed below. Complete the table.

Total Total Average Average Average

Total Fixed Variable Total Fixed Variable Total Marginal

Product Cost Cost Cost Cost Cost Cost Cost

0 0

1 50

2 90

3 120

4 140

5 170

6 210

7 260

8 320

9 390

2) Graph the fixed cost, variable cost and total cost curves on the same map.

3) On a second map (different form the one in #2) graph the AFC, AVC, ATC, and MC curves.

4) Explain why the MC curve intersects the AVC and ATC curves at their minimum points.