Question

The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm? Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm. L TPL 0 10 1 30 2 45 3 55 4 70 5 90 6 120

Answer 1

Answer:

7

Explanation:

is the ri8 answer of this question

Answer 2

The answer is stated below:

Explanation:

Computing TFC as:

TFC = TC - TVC

where

TC 10

TVC is 0

So, TFC at Quantity 0

TFC = 10 - 0

TFC = 10

Note: TFC is fixed for every quantity (Q)

Therefore, from Q0 to Q10, the TFC will be 10

Now computing TVC as:

Q 0

TVC = TC - TFC

TVC = 10 - 10

TVC = 0

Note : Computing TVC for the Quantities till Q6

The formula for computing the AFC as:

AFC = TFC / Q

Computing AFC for Q1 as:

AFC = 10/1

AFC = 10

Note : Computing AFC for the Quantities till Q6

The formula for computing the AVC as:

AVC = TVC / Q

Computing the AVC for Q1 as:

AVC = 20/1

AVC = 20

Note : Computing AVC for the Quantities till Q6

The formula for computing the SAC as:

SAC = AFC + AVC

Computing the SAC for Q1 as:

SAC = 20 + 10

SAC = 30

Note : Computing SAC for the Quantities till Q6

The formula for computing the SMC as:

SMC = TC(n) - TC(n-1)

Computing the SMC for Q1 as:

SMC = 30 - 10

SMC = 20

Note : Computing SMC for the Quantities till Q6

The following Schedule is shown below:

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