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A Firm’S Average Fixed Cost, When It Produces 2 Units, is Rs 30. Its Average Total Cost Schedule is Given Below. Calculate Its Marginal Cost and Average Variable Cost at Each Level of Output. - Economics

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A firm’s average fixed cost, when it produces 2 units, is Rs 30. Its average total cost schedule is given below. Calculate its marginal cost and average variable cost at each level of output.  

Output (units)

1

2

3

Average Total Cost (Rs)

80

48

40 

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Solution

  Output

Average 

Total Cost

Average

Fixed Cost

Total 

Fixed Cost

Average 

Variable Cost

Total 

Variable Cost

Total 

Cost

Marginal

Cost

 

(ATC)

(AFC)

(TFC)

(AVC)

(TVC)

(TC)

(MC)

1

80

60

60

20

20

80

2

48

30

60

18

36

96

16

3

40

20

60

20

60

120

24

 

Concept: Cost - Average Fixed Cost
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