Description
A firm has fixed costs of $60 and variable costs as indicated in the table at the top of this page (link above). Complete the table and check your calculations before submitting the assignment. See table page 218 complete the table, answer the following questions, and submit assignment.Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves.Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relationships to one another. Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and the ATC curves at their minimum points.Explain how the location of each curve graphed in question 3b would be altered if (1) total fixed cost had been $100 rather than $60 and (2) total variable cost had been $10 less at each level of output.Graphs and table part of the assignment, complete and submit–draw a graph on a separate sheet and submit, your results must be readable and clear to receive credit for the assignment.
