The Total Cost (TC) schedule of a production unit is given below. Find out TFC, TVC, AC and MC.

Question

At zero unit of quantity TC = TFC and TFC is fixed. So than TFC is 10.TVC = TC – TFCATC = TC / QMC = TCn – TCn-1

Accepted Answer

At zero unit of quantity TC = TFC and TFC is fixed. So than TFC is 10.TVC = TC – TFCATC = TC / QMC = TCn – TCn-1