Question

Calculate MC, given the following information. Also, find AFC.

Output (Units)	Total Variable Cost (Rs.)	Total Fixed Cost (Rs.)
$0$ $1$ $5$	- $400$ $1,600$	$500$ - -

Answer 1

Output (Units)	TVC (Rs.)	TFC (Rs.)	MC (Rs.)	AFC (Rs.)
$0$ $1$ $5$	- $400$ $1,600$	$500$ $500$ $50$	- $400$ $\frac{1,600-400}{5-1}=\frac{1,200}{4}=300$	$\infty$ $500$ $100$

The total of the MC values between units 1 & 5 is 300.