From the table given below Output output- 0,1,2,3,4,5,6,7 TFC - 12,12,12,....,....,....,....,....

Question

From the table given below

Output	TFC	AFC	TVC	AVC	TC	AC	MC
0	12	....	0	....	12	....	....
1	12	12	10	10	22	22	10
2	12	6	16	....	28	14	....
3	....	....	21	7	....	....	55
4	....	3	28	....	40	....	7
5	....	2.4	....	8	52	10.4	12
6	....	....	....	10	....	12	....
7	....	1.7	91	13	10.	14.7	31

1. Fill the blank columns 

2. Using the information in the table draw TC, TVC, TFC in one and AC, AVC, AFC, MC in other and prepare a short note on them.

Answer 1

2. Use the data to draw the diagram. 

TC, TVC and TFC represent total costs. TC = TFC + TVC. 

TFC is the cost incurred on fixed factors. TVC is the cost incurred on variable costs. Even though the level of output is zero there will be some costs. This is known as fixed cost. When the level of output is zero total variable costs also will be zero.

It will increase as the level of output increases. AFC is the cost that always falls. It is a rectangular hyperbola. AVC, AC, MC are ‘U’ shaped. The MC will always pass through the minimum of the AVC and AC.