Page 3 - HA-COST

Output(units) 1 2 3 4 5 6 7
MC(Rs) 10 20 30 40 50 60 70
(i) Is the MC curve U-shaped?

(ii) Derive AVC schedule.Will the AVC curve be U-
shaped?Discuss why or why not?
2. Complete the following table:

Output(units) TC(Rs) AVC(Rs) MC(Rs)
0 80
1 180
2 270
3 350
4 440
3. The following table gives total cost schedule of a firm. It is also given
that AFC 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.
Outputs(units) 1 2 3 4 5 6
TC(Rs) 50 65 75 95 130 185
4. Complete the following table:

Output(unit) TVC(Rs) AVC(Rs) MC(Rs)
1 10 - -
- - 8 6
3 27 - -
- - 10 13
5. Calculate TC and AVC of a firm at each given level of output from its

cost schedule.
Output(units) 1 2 3 4 5 6
AFC(Rs) 60 30 20 15 12 10
MC(Rs) 32 30 28 30 35 43
6. Given below is the cost schedule of a firm. Its average fixed cost is Rs 20
when it produces 3 units. Calculate the MC and AC at each given level

of output.
Output(unit) 1 2 3
AVC(Rs) 30 28 32