## Costs in the Short Run

Read this section about how to calculate costs in the short-run like variable and marginal costs. Make sure to answer the "Try It" questions.

### TRY IT

The table below shows data for Jackets for an individual firm.

 Quantity of Jackets Fixed Costs (FC) Variable Costs (VC) Total Costs (TC) 0 ? ? 50 1 50 182 232 2 50 392 442 3 ? ? 680 4 50 ? 946 5 50 1190 1240 6 50 ? 1562 7 ? 1862 1912 8 50 2240 2290

Question 1

Given this data, what are fixed costs when quantity is 0?

Hint: Recall TC = FC + VC. In addition, VC = 0 when quantity is 0. Based on this and the information about TC you can calculate fixed costs.

Question 2

Given this data, what are variable costs when quantity is 0?

Hint: What is true about variable costs when quantity is 0?

Question 3

Given this data, what are variable costs when quantity is 3?

Hint: Recall TC = FC + VC. If we rearrange this equation we know that VC = TC - FC.

Question 4

Given this data, what are variable costs when quantity is 4?

Hint: Recall TC = FC + VC. If we rearrange this equation we know that VC = TC - FC.

Question 5

Given this data, what are variable costs when quantity is 6?

Hint: Recall TC = FC + VC. If we rearrange this equation we know that VC = TC - FC.

Question 6

Given this data, what are fixed costs when quantity is 3?

Hint: Recall that by definition fixed costs are fixed and do not change with quantity.

Question 7

Given this data, what are fixed costs when quantity is 7?

Hint: Recall that by definition fixed costs are fixed and do not change with quantity.