Complete the following table:
Dear student
mc1= tc1 - tc0
20 = 60 - x
x = 40
here 1 and 0 represents output. from here we conclude that fixed cost is rs 40.
working notes : 1) AVC = TVC/OUTPUT
2) TVC = AVC x OUTPUT
3) TC = TFC + TVC
4) MC= TCn - tc n-1
Regards
mc1= tc1 - tc0
20 = 60 - x
x = 40
here 1 and 0 represents output. from here we conclude that fixed cost is rs 40.
output(units) | AVC(RS) | TVC(RS) | TFC(RS) | TC(RS) | MC(RS) |
0 1 |
0 20;(20/1) |
0 20;(60-40) |
40 40 |
40 60 |
- 20 |
2 | 18 | 36; (18x2) | 40 | 76(40+36) | 16;(76-60) |
3 | 18;(54/3) | 54; (94-40) | 40 | 94; (76+18) | 18 |
4 | 20 | 80;(120-40) | 40 | 120 | 26 |
5 | 22 | 110;(22 x 5) | 40 | 150 | 30 |
2) TVC = AVC x OUTPUT
3) TC = TFC + TVC
4) MC= TCn - tc n-1
Regards