Well if you're given the total cost of 0 units, then that would be your fixed cost as FC doesn't vary with any change in the total output produced (quantity).
Find total cost when quantity = 0.
We can calculate using following methods 1 - High-Low method 2 - Regression analysis method 3 - Graphical method
Fixed cost = total cost / sale volume
Variable cost = Total Cost/ fixed cost
Total cost are calculated by adding variable cost and fixed cost FC+VC=TC
Find total cost when quantity = 0.
hell
Given the data on fixed and marginal Costs we require the number of units produced to ascertain the Average Total cost, from the MC we an get the TC but to calculate ATC we need the data on total quantity produced
We can calculate using following methods 1 - High-Low method 2 - Regression analysis method 3 - Graphical method
Fixed cost = total cost / sale volume
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
Variable cost = Total Cost/ fixed cost
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Total Variable Cost divided by Quantity of Output
Total cost are calculated by adding variable cost and fixed cost FC+VC=TC
Marginal cost = derivative of (Total cost/Quantity) Where Total cost = fixed cost + variable cost Marginal cost = derivative (Variable cost/Quantity) (by definition, fixed costs do not vary with quantity produced) Average cost = Total cost/Quantity The rate of change of average cost is equivalent to its derivative. Thus, AC' = derivative(Total cost/Quantity) => derivative (Variable cost/Quantity) = MC. So, when MC is increasing, AC' is increasing. That is, when marginal cost increases, the rate of change of average cost must increase, so average cost is always increasing when marginal cost is increasing.