Course number_section number_last name_first name_unit number
Example: BU224_Section02_David_Alex_Unit1
2. At the top of the template, insert the appropriate information: Your name, course number and section, and the date.
Upload the completed assignment to the appropriate Dropbox.
Questions
1. When ONLY total costs (TC) are known, such as shown in Table 1 below, explain how to calculate each of the following and provide at least one step-by-step example using the data from Table 1:
a. Fixed costs (FC)
(Enter your response here.)
b. Variable costs (VC)
(Enter your response here.)
c. Average variable costs (AVC)
(Enter your response here.)
d. Average total costs (ATC)
(Enter your response here.)
e. Average fixed costs (AFC)
(Enter your response here.)
f. Marginal costs (MC)
(Enter your response here.)
2. Table 1 shows the hourly production and total cost estimates for a new manufacturing firm wishing to enter the smartphone market. Fill in the blank cells in columns a., b., c., d., and e. on the table by computing the appropriate values.