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COURSE CODE: BCO115 COURSE NAME: TUTORING MICROECONOMICS SPRING Task brief & rubrics assessment
Task brief
Description:
• Individual task. Each problem 25 % of the total grade.
1. Calculate different costs of production by a firm which makes tires for cars:
Quantity Total Fixed Cost Total Variable Cost
0 200 € 0
1 200 55
2 200 75
3 200 95
4 200 145
5 200 205
6 200 365
a. Calculate the following: marginal cost, average total cost average variable cost, average fixed cost, at every level of production.
Solution:
Quantity
Total Fixed
Cost
Average
Fixed Cost
Total
Variable
Cost
Average
Variable
Cost
Total Cost
Average
Total Cost
Marginal
cost
0
200
0
0
0
200
0
200
1
200
200
55
55
255
255
55
2
200
100
75
38
275
138
20
3
200
67
95
32
295
98
20
4
200
50
145
36
345
86
50
5
200
40
205
41
405
81
60
6
200
33
365
61
565
94
160
b. Make a graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? And
between the marginal-cost curve and the average-variable cost curve? Explain in detail.
Solution:
Graph:
0
50
100
150
200
250
300
0 1 2 3 4 5 6
Cost
Quantity
Average Variable Cost Average Total Cost Marginal cost
