The following table shows the total cost schedule of a firm. What is the total fixed cost schedule of this firm? Calculate the TVC, AFC, AVC, SAC and SMC schedules of the firm.

Q	TC
0	10
1	30
2	45
3	55
4	70
5	90
6	120

6

(a)

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.

Q	TC
1	50
2	65
3	75
4	95
5	130
6	185

6

(a)

A firm's SMC schedule is shown in the following table. The total fixed cost of the firm is Rs. 100 Find the TVC, TC,  AVC and SAC schedules of the firm.

Q	SMC
0	-
1	500
2	300
3	200
4	300
5	500
6	800

6

(a)

The total fixed cost of a firm is Rs.12. Given below is its marginal cost schedule. Calculate total cost and average variable cost for each given level of output.

Output	1	2	3	4	5	6
Marginal Cost(Rs.)	9	7	2	4	8	12

6

(a)

Calculate TC and AVC of a firm at each given level of output from its cost schedule.

Output	1	2	3	4	5	6
AFC	60	30	20	15	12	10
MC(Rs.)	32	30	28	30	35	43

6

(a)

Why does the difference between Average Total Cost and Average Variable Cost decrease with an increase in the level of output? Can these two be equal at some level of output? Explain.

6

(a)

Why does difference between ATC and AVC decrease with increase in level of output? Explain.

6

(a)

Complete the following table if AFC of one unit of production is Rs. 60.

Output	1	2	3	4	5	6	7	8
TC	90	105	115	120	135	160	200	260
TVC
TFC
AVC
AFC
ATC
MC

6

(a)

A firm's fixed cost is 2000. Compute TVC, AVC, TC and ATC from the following table.

Output(Units)	1	2	3	4	5	6	7
MC(Rs.)	2000	1500	1200	1500	2000	2700	3500

6

(a)

Suppose that a firm's TFC is Rs.100 and MC schedule of the firm is the following:

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?

6

(a)