Question

Total Fixed Cost is given as ₹ 60. Calculate AVC and MC from the following

information given about TC:

Out put 1 2 3

TC (₹ ) 80 90 105​

Answer 1

Explanation:

Units: 0, 1, 2, 3, 4, 5, 6;

TFC: 60, 60, 60, 60, 60, 60, 60;

AFC: ∞, 60, 30, 20, 15, 12, 10;

TVC: 0, 20, 40, 51, 56, 70, 90;

AVC: 0, 20, 20, 17, 14, 14, 15;

MC: 0, 20, 20, 11, 5, 14, 20.