Question

The accompanying table shows a car manufacturer’s total cost of producing cars:

Qty |TC| Variable Costs| Avg. Var. Costs| Avg. Total Costs| Avg. Fixed Costs
0 |$500,000| ---- | ---- | ---- |---- |
1 |540,000 |
2 |560,000 |
3 |570,000 |
4 |590,000 |
5 |620,000 |
6 |660,000 |
7 |720,000 |
8 |800,000 |
9 |920,000 |
10 |1,100,000 |



What is this manufacturer’s fixed cost?

For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC). (In simplistic terms please)

What is the minimum-cost output?