Question: Given a cost function:

and an quantity range from 1 -10, complete the table below

Q FC VC TC AC MC

0

1

2

3

Using excel, plot the costs versus quantities (costs on y-axis, and quantity on x-axis). Label your graph appropriately with proper legends. Put a title on your gragh.

Explain the relationship between average variable cost and marginal costs. What are the factors that affect these costs?

Explain the significance of these costs in making business decisions