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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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