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.