Question

question2suppose a firm's TFC is Rs. 1oo and mc schedule is as follows:
output: 1 2 3 4 5 6 7
Mc: 10 20 30 40 50 60 70
(a)Is MC curve U shaped ?
(b)Derive AVC​

Answer 1

Answer:

Here Total Fixed Cost is $100 for every time. so, AVC= 10,15,20,25,30,35,40.