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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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Question

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 

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

 

  Is there an error in this question or solution?
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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. Concept: Cost - Average Fixed Cost.
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