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.

L	TPL
0	−
1	500
2	300
3	200
4	300
5	500
6	800

Answer 1

Q (units)	SMC (Rs)	TFC = Rs 100 (Rs)	(Rs)	TC = TVC + TFC (Rs)	(Rs)	(Rs)
0	−	100	−	100	−	−
1	500	100	500	500 + 100 = 600
2	300	100	300 + 500 = 800	800 + 100 = 900
3	200	100	200 + 800 = 1000	1000 + 100 = 1100
4	300	100	300 + 1000 = 1300	1300 + 100 = 1400
5	500	100	500 + 1300 = 1800	1800 + 100 = 1900
6	800	100	800 + 1800 = 2600	2600 + 100 = 2700