The table below indicates the total weekly costs of operating an X-ray clinic at
ID: 3119059 • Letter: T
Question
The table below indicates the total weekly costs of operating an X-ray clinic at different volumes of output (i.e., X-rays).
# of X-rays
Total Operating
Cost/Week
$
Average Total Cost
$
Marginal Cost
$
0
9,200
20
16,300
40
22,350
60
28,800
80
34,400
100
45,200
120
58,000
-Do the necessary calculations to enter the correct amounts in the last two columns. Remember, marginal cost is defined as the extra cost of providing the service to one more patient.
-What is the fixed cost of running the X-ray clinic? How do you know?
-Given the fixed cost above, what is the total variable cost of providing 80 X-rays? What is the average variable cost at that output level?
# of X-rays
Total Operating
Cost/Week
$
Average Total Cost
$
Marginal Cost
$
0
9,200
20
16,300
40
22,350
60
28,800
80
34,400
100
45,200
120
58,000
Explanation / Answer
a) Fixed Cost = 9200$
Since it is costing that much amount even when there is no patient in the lab
b) Total Variable cost of providing 80 x-rays = 34400 - 9200 = 25200
Average variable cost at that output level = 25200/80 = 315$
Number of X Rays Total Operation Cost Per Week Average Total Cost Marginal Cost 0 9200 0 0 20 16300 7100 355 40 22350 13150 328.75 60 28800 19600 326.66 80 34400 25200 315 100 45200 36000 360 120 58000 48800 406.6