1. Solve for ATC, AVC, AFC, and MC per output produced using Microsoft Excel.

Total Cost Fixed

ATC
AVC AFC ∆TC ∆Q MC
Cost + Variable Variable Fixed
Units Fixed Cost Variable Cost Cost Total Cost/Units Cost/Units
TCB-TCA QB-QA ∆TC /∆Q
Cost/Units

9 311.32 402.16 713.48 79.27556 44.68444 34.59111

15 311.32 804.32 1115.64 74.376 53.62133 20.75467 402.16 6 67.02667
28 311.32 1206.48 1517.8 54.20714 43.08857 11.11857 402.16 13 30.93538
35 311.32 1608.64 1919.96 54.856 45.96114 8.894857 402.16 7 57.45143
38 311.32 2010.8 2322.12 61.10842 52.91579 8.192632 402.16 3 134.0533
40 311.32 2412.96 2724.28 68.107 60.324 7.783 402.16 2 201.08

2. Graph the ATC, AVC and MC

90 70
80
60
70
50
60
50 40
40 30
30
20
20
10 10
0 0
1 2 3 4 5 6 1 2 3 4 5 6

ATC Graph AVC Graph

40
35 Chart Title
30 250
25 200
20
150
15
100
10
5 50

0 0
1 2 3 4 5 6 1 2 3 4 5

AFC Graph MC Graph

3. From the graph in the previous item locate and label the following:
a. level or the output where diminishing product begins
Ans. 28 Units

b. minimum cost per unit

Ans. 54.207

c. minimum variable cost per unit

Ans. 43.089

d. minimum fixed cost per unit

Ans. 7.783