Question
The following table shows total cost schedule of a firm. What is total fixed cost schedule of this firm? Calculate TVC, AFC, AVC, SAC and SMC schedules of a firm.
|
Q |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
|
TC |
10 |
30 |
45 |
55 |
70 |
90 |
120 |
Solution
|
Q |
TC |
TFC |
AFC |
TVC |
AVC |
SAC |
SMC |
|
0 |
10 |
10 |
0 |
0 |
- |
- |
- |
|
1 |
30 |
10 |
10 |
20 (TC - TFC) |
20 (TVC/Q) |
30 (TC/Q) |
20 (= 30 - 10) |
|
2 |
45 |
10 |
5 |
35 |
17.5 |
22.5 |
15 |
|
3 |
55 |
10 |
3.33 |
45 |
15 |
18.33 |
10 |
|
4 |
70 |
10 |
2.5 |
60 |
15 |
17.50 |
15 |
|
5 |
90 |
10 |
2 |
80 |
16 |
18 |
20 |
|
6 |
120 |
10 |
1.67 |
110 |
18.33 |
20 |
30 |
