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.

L	TPL
1	50
2	65
3	75
4	95
5	130
6	185

Answer 1

Q (units)	TC (Rs)	TFC = Rs 20 (Rs)	TVC = TC − TFC (Rs)	(Rs)	(Rs)	SAC = AFC + AVC (Rs)	SMC = TCn − TCn−1 (Rs)
1	50	20	50 − 20 = 30			20 + 30 = 50	50 − 20 = 30
2	65	20	65 − 20 = 45			10 + 22.5 = 32.5	65 − 50 = 15
3	75	20	75 − 20 = 55	$\frac{55}{3}=18.33$		6.66 + 18.33 = 24.99	75 − 65 = 10
4	95	20	95 − 20 = 75			5 + 18.75 = 23.75	95 − 75 = 20
5	130	20	130 − 20 = 110			4 + 22 = 26	130 − 95 = 35
6	185	20	185 − 20 =165			3.33 + 27.5 = 30.83	185 − 130 = 55