Assignment 2.2: Production Costs
In this assignment, you will calculate various costs of a clinic and identify factors likely to increase or decrease those costs. You will calculate the clinic’s marginal cost (MC). To better understand how these costs for the clinic behave, you will translate the different average costs and marginal cost into graphical form.
Use the Assignment 2.2 Document (Word) (Links to an external site.) to
Define total fixed costs, total variable costs and total costs.
State the formulas for AFC, AVC, ATC and MC.
Complete the table by calculating AFC, AVC, ATC, and MC.
List examples of the factors that would cause costs for the clinic to increase or decrease.
Present a graph of curves for TFC, TVC and TC.
Present a graph of the curves for AFC, AVC, ATC and MC.
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