A firm's average fixed cost of producing 2 units of a good is Rs. 9 and given below is its total cost schedule. Calculate its average variable cost and marginal cost for each of the given level of output.
Output (Units) 1 2 3
TC (Rs.) 23 27 30

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Solution

Output
(Units) TC
(RS.) AFC
(Rs.) TFC
(Rs.) TVC
(Rs.) AVC
(Rs.) MC
(Rs.)
1 23 18 18 $23 - 18 = 5$ $\frac{5}{1} = 5$ 5
2 27 9 18 $27 - 18 = 9$ $\frac{9}{2} = 4.5$ 4
3 30 6 18 $30 - 18 = 12$ $\frac{12}{3} = 4$ 3

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Find out
(i) the average fixed cost of producing 4 units.
(ii) the average variable cost of producing 5 units.
(iii) the least average cost level of output.
(iv) the marginal cost of producing the 3rd unit.
(v) the total variable cost of producing 6 units.

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Output (Units)	TC (RS.)	AFC (Rs.)	TFC (Rs.)	TVC (Rs.)	AVC (Rs.)	MC (Rs.)
1	23	18	18	$23 - 18 = 5$	$\frac{5}{1} = 5$	5
2	27	9	18	$27 - 18 = 9$	$\frac{9}{2} = 4.5$	4
3	30	6	18	$30 - 18 = 12$	$\frac{12}{3} = 4$	3

A firm's average fixed cost of producing 2 units of a good is Rs. 9 and given below is its total cost schedule. Calculate its average variable cost and marginal cost for each of the given level of output.Output (Units)123TC (Rs.)232730

Output(Units) TC(RS.) AFC (Rs.) TFC (Rs.) TVC (Rs.) AVC(Rs.)MC(Rs.)123 18 1823−18=5 51=5 5227 9 1827−18=9 92=4.5 4330 6 1830−18=12 123=4 3

A firm's average fixed cost of producing 2 units of a good is Rs. 9 and given below is its total cost schedule. Calculate its average variable cost and marginal cost for each of the given level of output.
Output (Units) 1 2 3
TC (Rs.) 23 27 30

Output
(Units) TC
(RS.) AFC
(Rs.) TFC
(Rs.) TVC
(Rs.) AVC
(Rs.) MC
(Rs.)
1 23 18 18 $23 - 18 = 5$ $\frac{5}{1} = 5$ 5
2 27 9 18 $27 - 18 = 9$ $\frac{9}{2} = 4.5$ 4
3 30 6 18 $30 - 18 = 12$ $\frac{12}{3} = 4$ 3