Answer :



Total cost = Total Fixed cost + Total variable cost


Total fixed cost = Total cost - Total variable cost


The total fixed is 200 because at 0 quantity the total cost ( without any variable cost) is 200.


Average variable cost = Total cost/ Quantity


AT 0 quantity


Average variable cost = Total cost/ Quantity


Average variable cost =200/0


Average variable cost =0


At 1 quantity


Average variable cost = Total cost/ Quantity


1000 = Total cost/ 1


Total cost = 1000


Total variable cost = Total cost -Total fixed cost


Total variable cost = 1000- 200


Total variable cost = 800


At 2 quantity


Total cost = Total Fixed cost + Total variable cost


Total cost = 200 + 180


Total cost = 380


Average variable cost = Total cost/ Quantity


Average variable cost = 380/2


Average variable cost = 190


At 3 quantity


Average variable cost = Total cost/ Quantity


80 = Total cost/3


Total cost = 80*3 = 240


Total variable cost = Total cost -Total fixed cost


Total variable cost = 240- 200


Total variable cost = 40


At 4 quantity


Total variable cost = Total cost -Total fixed cost


Total variable cost = 490- 200


Total variable cost = 290


Average variable cost = Total cost/ Quantity


Average variable cost =490/4


Average variable cost =122.5


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