Economics05 marksNumerical: cost output calculationsCost schedule computations
Cost Analysis Problem The cost and output of a firm is as below: | Output (units) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | |---|---|---|---|---|---|---|---| | TC (Rs.) | 150 | 300 | 420 | 600 | 790 | 1000 | 1260 | From this information find out: i. AFC of producing 3 units ii. AVC of producing 4 units iii. Lea
Cost Analysis Problem
The cost and output of a firm is as below:
| Output (units) | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| TC (Rs.) | 150 | 300 | 420 | 600 | 790 | 1000 | 1260 |
From this information find out:
i. AFC of producing 3 units ii. AVC of producing 4 units iii. Least AC level of output iv. MC of producing 5 units v. TVC of producing 6 units
[5]
Output (units) 0 1 2 3 4 5 6 ------------------------ TC (Rs.) 150 300 420 600 790 1000 1260 Total Fixed Cost (TFC) = TC at output 0 = Rs. 150 (cost incurred even when output is zero) --- $$AFC = \frac{TFC}{Q} = \frac{150}{3} = \text{Rs. } 50$$ --- Step 1: