Question

1. Complete the following table accurately.
2. [5 Marks]      Draw the TFC, AFC and AVC in one graph

Q	TVC	TFC	TC	MC	ATC	AFC	AVC
0	0	100
1	20
2	38
3	51
4	62
5	75
6	90

Answer 1

Q TVC TFC TC AC MC ATC AFC AVC 0 0 100 100 - - - - - 1 20 100 120 120 20 120 100 20 2 38 100 138 69 18 69 50 19 3 51 100 151 5.33 13 50.33 33.33 17 4 62 100 162 4.5 11 40.5 25 15.5 5 75 100 175 35 13 35 20 15 6 90 100 190 31.66 15 31.66 16.1 15 TFC is fixed cost is same for all the units=100 TC=TVC+TFC AC=TC/Q AVC=TVC/Q AFC=TFC/Q ATC=TC/Q MCn= TCn - TCn-1 MC, marginal cost is the change in total cost when a additional unit od output is produced .