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Question
Complete the following table:
| Output (units) |
Average Fixed Cost (Rs) |
Average Variable Cost (Rs) |
Marginal Cost (Rs) |
Total Cost (Rs) |
| 1 | 120 | 40 | ... | ... |
| 2 | 60 | 56 | ... | 232 |
| 3 | ... | 54 | ... | ... |
| 4 | 30 | ... | 54 | ... |
| 5 | ... | ... | ... | ... |
Solution
| Output (Units) |
Average Fixed Cost (Rs) |
AVC(Rs) AVC = `"TVC"/Q` |
MC(Rs) MC = TVCn - TVCn -1 |
TC(Rs) = TFC +TVC |
TFC | TVC |
| 1 | 120 | 40 | 40 | 160 | 120 | 40 |
| 2 | 60 | 56 | 72 | 232 | 120 | 112 |
| 3 | 40 | 54 | 50 | 282 | 120 | 162 |
| 4 | 30 | 54 | 54 | 336 | 120 | 216 |
| 5 | 27 | 120 |
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