Question

The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm?

Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm.

L	TPL
0	10
1	30
2	45
3	55
4	70
5	90
6	120

Answer 1

Q (units)	TC (Rs)	TFC = TC − TVC 10 = 10 − 0 (Rs)	TVC = TC − TFC (Rs)	(Rs)	(Rs)	SAC = AFC + AVC (Rs)	SMC = TCn − TCn−1 (Rs)
0	10	10	10 − 10 = 0	−	−	−	−
1	30	10	30 − 10 = 20			20 + 10 = 30	30 − 10 = 20
2	45	10	45 − 10 = 35			17.5 + 5 = 22.5	45 − 30 = 15
3	55	10	55 −10 = 45			15 + 3.33 = 18.33	55 − 45 = 10
4	70	10	70 − 10 = 60			15 + 2.5 = 17.5	70 − 55 = 15
5	90	10	90 − 10 = 80			16 + 2 = 18	90 − 70 = 20
6	120	10	120 − 10 = 110			18.33 + 1.66 = 19.99	120 − 90 = 30