Economics20825 marksNumerical: Cost schedule calculationCost schedule computations
Cost Analysis Question Consider the following cost schedule: | Output | 0 | 1 | 2 | 3 | 4 | 5 | |--------|---|----|----|----|----|-----| | TFC (Rs.) | 20 | 20 | 20 | 20 | 20 | 20 | | TVC (Rs.) | 0 | 30 | 50 | 80 | 120 | 160 | a) Calculate TC, AFC, AVC, AC, and MC. b) Explain the relationship between
Cost Analysis Question
Consider the following cost schedule:
| Output | 0 | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|---|
| TFC (Rs.) | 20 | 20 | 20 | 20 | 20 | 20 |
| TVC (Rs.) | 0 | 30 | 50 | 80 | 120 | 160 |
a) Calculate TC, AFC, AVC, AC, and MC.
b) Explain the relationship between AVC and MC. [5+0+0]
Output (Q) 0 1 2 3 4 5 --------------------- TFC (Rs.) 20 20 20 20 20 20 TVC (Rs.) 0 30 50 80 120 160 Formulas: $$TC = TFC + TVC, \quad AFC = \frac{TFC}{Q}, \quad AVC = \frac{TVC}{Q}, \quad AC = \frac{TC}{Q}, \quad MC = \frac{\Delta TC}{\Delta Q}$$ Q TFC TVC TC AFC AVC AC MC ---------------------...