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Chapter 6 Cost Solutions

Question - 11 : -
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.

Answer - 11 : -

Q

TC

0

10

1

30

2

45

3

55

4

70

5

90

6

120


Answer

he total fixed cost will be the same at all the levels of output ranging from zero to six. For zero output, total cost is ? 10. At zero output, total variable cost will be zero. Hence, Rs. 10 represents total fixed cost at all levels of output.

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