Biology Forums - Study Force

Relationship between Short and Long Run Average Costs

The table shows information about Umbrella Corporation's short-run costs.

Quantity of Prescription Drugs	Total Fixed Cost	Total Variable Cost	Total Cost
0	$4000​	​	​
1	​	$7​	​
2	​	$14​	​
3	​	$21​	​
4	​	​	$4028​

What is the average fixed cost of producing 4 prescription drugs? What is the average variable cost?
What is the average total cost of producing 2 prescription drugs? What is the marginal cost?

▸ $2000, $7, $2007, $2000

▸ $2000, $21, $2007, $2000

▸ $1000, $7, $2007, $2000

▸ $1000, $7, $2007, $7

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