This worksheet is designed to provide students with a chance to practice calculating the different measures of economic costs as well as gain an understanding of the shape of the various cost curves and the relation between them.
Students are required to:
1. Calculate the following measures at different levels of output: Average Total Cost, Marginal Cost, Average Fixed Cost, and Average Variable Cost.
2. Graph each of the four cost curves and investigate the relationship between marginal cost and average total costs.
3. Identify the firm's most efficient point of production (minimum ATC).