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Question

A firm's SMC schedule is shown in the following table. The total fixed cost of the firm is Rs. 100. Find the TVC, TC, AVC and SAC schedules of the firm.
Q0123456
SMC-500300200300500800

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Solution

QSMC
(Rs.)
TFC
(Rs.)
TVC
(Rs.)
TC
(Rs.)
AVC
(Rs.)
SAC
(Rs.)
0- 100 0 100 - -
1 500 100 500 600 500 600
2 300 100 800 900 400 450
3 200 100 1,000 1,100 333.33 366.67
4 300 100 1,300 1,400 325 350
5 500 100 1,800 1,900 360 380
6 800 100 2,600 2,700 433.33 450

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