Solutions Economics

The table below represents the short run cost structure for a hypothetical law firm. Output is the n

Question: The table below represents the short run cost structure for a hypothetical law firm. Output is the number of clients within a given time period.

a. Fill in the table.

b. What is the value of fixed cost?

c. At what point does short run marginal cost begin to increase?

d. At what point does marginal cost equal average total cost?

e. Graph marginal cost and average total cost.

Output	Total Variable Costs	Total Cost	Marginal Cost	Average Cost
0	0	60,000	-	-
1	30,000	90,000	30,000
2				54,500
3	65,000		16,000	41,667
4	80,000
5		160,000	20,000	32,000
6	124,000
7		210,000		30,000
8			30,000
9		275,000		30,556
10	255,000