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Question

The following table gives the total cost schedule of a firm. It is also given that the average fixed cost at 4 units of output is Rs. 5. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output.

Q123456TC50657595130185

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Solution

QTC(Rs.)TFC(4×Rs.5)(Rs.)TVC(Rs.)AFC(Rs.)AVC(Rs.)SAC(Rs.)SAC(Rs.)15020302030503026520451022.532.51537520556.6718.3251049520755323.720513020110418.75356185201653.33526552230.827.53

MC (when output is 1 unit)
=TVCnTVCn1
=300
=30


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