Let q represent the amount of output produced by a particular firm. Let TC denote total costs of production for this firm, FC denote fixed costs, VC denote variable costs, MC denote marginal costs, ATC denote average total costs, and AVC denote average variable costs. Using this notation, the following is true about the firm’s cost structure:
FC=$100 at q=0.
MC=$60 at q=1.
VC=$110 at q=2.
ATC=$90 at q=3.
AVC=$60 at q=4.
TC=$420 at q=5.
In dollars, what is TC at q=0? (Enter a number.)
(Hint: Make a table with 6 rows and 7 columns in which the first column is labeled q and ranges from 0 to 5, and the other columns are labeled TC, FC, VC, MC, ATC, and AVC. Enter the information provided above into the appropriate cells of the table. Using this information, you should be able fill in all of the remaining cells of the table.)