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(c) The distance between AC and AVC keeps on rising as output level

                          increases.
                          (6 MARKS QUESTIONS)
                          1.  Find out TVC, TFC, AVC, AFC, ATC. If the AFC at 4 units of

                              output is Rs.5.
                              Output      TC        TFC        TVC        AFC        AVC         ATC
                              1           50        -          -          -          -           -
                              2           65        -          -          -          -           -
                              3           75        -          -          -          -           -
                              4           95        -          -          5          -           -
                              5           130       -          -          -          -           -

                              6           185       -          -          -          -           -
                          2.  Explain the relationship between AC, AVC and AFC with a
                              schedule anda diagram.
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