Microeconomics

The firm pays $25 per hour for workers and has fixed costs that work out to $100 per hour.

   TVC or total variable cost, is L x 25.
   TC or total cost, is TVC + $100.
   AVC or average variable cost, is TVC ÷ Q.
   AFC or average fixed cost, is $100 ÷ Q.
   ATC is TC ÷ Q .
   MC or marginal cost, is the change in cost divided by the change in output. Each added worker costs $25 per hour, we divide this by the added output or marginal product of each added worker to obtain marginal cost.

L	Q	TVC	TC	AVC	AFC	ATC	MC
1	10	$25	$125	$2.50	$10.00	$12.50	$2.50
2	25	$50	$150	$2.00	$4.00	$6.00	$1.67
3	38	$75	$175	$1.97	$2.63	$4.61	$1.92
4	49	$100	$200	$2.04	$2.04	$4.08	$2.27
5	59	$125	$225	$2.12	$1.69	$3.81	$2.50
6	68	$150	$250	$2.21	$1.47	$3.68	$2.78
7	75	$175	$275	$2.33	$1.33	$3.67	$3.57
8	81	$200	$300	$2.47	$1.23	$3.70	$4.17
9	86	$225	$325	$2.62	$1.16	$3.78	$5.00
10	90	$250	$350	$2.78	$1.11	$3.89	$6.25
11	93	$275	$375	$2.96	$1.08	$4.03	$8.33
12	95	$300	$400	$3.16	$1.05	$4.21	$12.50