COMPLETE THE FOLLOWING TABLE output(units) 1 2 3 4 total cost(rs) 60 - Economics - The Theory of The Firm Under Perfect Competition

Question

COMPLETE THE FOLLOWING TABLE
output(units) 1 2 3 4
total cost(rs) 60 120
AVC 18 20
MC 20 18

Amanjit Kaur · Accepted Answer

Dear Atul,

Check the solution for the same:

Output

TC=TFC+TVC

AVC=TVCOutput

TVC

TFC=(TC-TVC)

MCn=TVCn-TVCn-1

1
60

20

20
40
(60-20)
20

2
76
(36+40)
18

36

40
16
(36-20)

3
94
(54+40)

18

54

40
18

4
120
20

80

40
26
(80-54)

Here,

TVC1= MC1 + TVC0
TVC1=â€‹ 20+0=20

TVC2= AVC2* output
TVC2= 18 * 2 =36

TVC3= MC3+ TVC2
TVC3= â€‹18+36=54

TVC4= AVC4* output
TVC4= 20 * 4 =80

COMPLETE THE FOLLOWING TABLE. output(units) 1 2 3 4 total cost(rs) 60 ...... ....... 120 AVC ...... 18 ........ 20 MC 20 ...... 18 ......