Q. 265.0( 3 Votes )

The following table gives the total cost schedule of a firm. It is also given that the average fixed cost at 4 units of output is Rs 5. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output.

Answer :

Given – Average fixed cost at 4 units of output is Rs 5

Therefore, Total Fixed Cost for 4 units will be Rs 20

As we know that the FC remains constant so it will be Rs 20 for all levels of output

SAC = TC / Q

TFC = 20

TVC = TC – TFC

AVC = TVC / Q

AFC = TFC / Q

SMC = TVC_N+1 - TVC_N

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