<p>The first clue you should get is TC for Q = 1 is 8 (since ATC = 8). Then as MC for Q = 1 is 3, you know that TC for Q = 0 is 8-3 = 5, which is the same as fixed cost.</p>

CC BY-SA 4.0
2019-12-12T10:23:00.920Z
2019-12-12T10:23:00.920Z
Art
<p>As you've said, each unit costs $7. Also, Total Cost= Variable Cost + Fixed Cost. Therefore, when Q=0 TC=0=VC (because the company does not produce any products).
When Q=1 TC=7 and so on. Seeing your second table, you could easily calculate every TC in every production state by using TC=FC+VC. Now, if your second table is wrong follow my previous advice.</p>

CC BY-SA 3.0
2018-04-06T16:14:35.907Z
Market price equals \$7 (cost to consumers) is not the same as each unit costs \$7 (to produce).
Herr K.
CC BY-SA 3.0
2018-04-06T13:56:19.653Z
2018-04-06T13:56:19.653Z
Alexandros Voliotis
<p>I've been working on solving a table for the past hour or so, I'm completely lost as it appears the values aren't quite correct, this is what we've been given to solve:</p>

<p><a href="https://i.sstatic.net/nbRI8.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/nbRI8.png" alt="total cost table"></a></p>

<p>We've been given that the market price is $7/unit.</p>

<p>I attempted to solve for Variable Cost first, however when I proceeded to try to get ATC once I had this, it resulted in incorrect answers, here is what I had before (given in the previous picture is bolded in the following):</p>

<p><a href="https://i.sstatic.net/T5Mvg.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/T5Mvg.png" alt="attempted solution of total cost table"></a></p>

<p>I'm just not exactly sure where I am going wrong, any advice would be appreciated. I am not expecting answers, but at least a bit of guidance on whether I was going the right direction already, or where I made the mistake.</p>

<p>Thank you!</p>

<microeconomics>
Where to begin with solving this table on Total Cost analysis?
liquidsystem
# Where to begin with solving this table on Total Cost analysis?

(Asked by: username_0 on 2018-03-20)

I've been working on solving a table for the past hour or so, I'm completely lost as it appears the values aren't quite correct, this is what we've been given to solve:

[![total cost table](https://i.sstatic.net/nbRI8.png)](https://i.sstatic.net/nbRI8.png)

We've been given that the market price is $7/unit.

I attempted to solve for Variable Cost first, however when I proceeded to try to get ATC once I had this, it resulted in incorrect answers, here is what I had before (given in the previous picture is bolded in the following):

[![attempted solution of total cost table](https://i.sstatic.net/T5Mvg.png)](https://i.sstatic.net/T5Mvg.png)

I'm just not exactly sure where I am going wrong, any advice would be appreciated. I am not expecting answers, but at least a bit of guidance on whether I was going the right direction already, or where I made the mistake.

Thank you!

**Tags:** microeconomics


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## 2 answers

### Answer by username_1 on 2019-12-12. Score: 0

The first clue you should get is TC for Q = 1 is 8 (since ATC = 8). Then as MC for Q = 1 is 3, you know that TC for Q = 0 is 8-3 = 5, which is the same as fixed cost.


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### Answer by username_2 on 2018-04-06. Score: -2

As you've said, each unit costs $7. Also, Total Cost= Variable Cost + Fixed Cost. Therefore, when Q=0 TC=0=VC (because the company does not produce any products).
When Q=1 TC=7 and so on. Seeing your second table, you could easily calculate every TC in every production state by using TC=FC+VC. Now, if your second table is wrong follow my previous advice.

> **Comments:**
> **username_3**: Market price equals \$7 (cost to consumers) is not the same as each unit costs \$7 (to produce).  

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