The left-hand column, units, is the quantity produced, or Q.

TC = FC + VC

AFC = FC divided by units produced or AFC = FC/Q

AVC = VC divided by units produced or AVC = VC/Q

ATC stands for average total cost (ATC); ATC = TC/Q

For AFC, AVC, and ATC we leave the first entry blank so as to not divide by zero.

MC = Change in TC divided by Change in Q (units)

The first line of the MC column is left empty since there is no previous entry with which to compare.

What is the lowest possible price this firm could accept in the short-run? Check the AVC column for the lowest entry, which is $21.25. Notice that total variable costs ($85) divided by 4 (the associated quantity) = $21.25. Remember that in the short-run all variable costs must be covered in order for the firm to stay open. On a per unit basis, the information needed is found in the AVC column.

What is the lowest possible price this firm could accept in the long-run? Again, the information is needed on a per unit basis, so look at the ATC column. In the long-run all costs must be covered or the firm will have to shut down. We would like to have data for 6 units to confirm that $46 is the lowest entry in the ATC column (You can see that the total cost of $230 divided by the associated quantity of 5 = $46.) Almost certainly this is so, considering the pattern in the MC column. For instance, with MC = 50 for Q= 6, ATC would rise above $46.