2. Economics
3. a firm has the following short run total costs where...

# Question: a firm has the following short run total costs where...

###### Question details

A firm has the following short run total costs, where TC is total cost and Q is output:

Q TC

0 $100 1$ 120

2 160

3 210

4 290

5 390

6 510

7 650

8 810

(a) What is total fixed cost equal to?

(b) What is total variable cost equal to at Q = 2?

(c) What is average total cost equal to at Q = 5?

(d) What is marginal cost equal to at Q =5 ?

(e) At Q =5, is the firm operating under increasing or diminishing returns, and why?