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3. Production and Costs
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Q27 of 30 Page 49

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



TVC = SMCN + SMCN+1


AVC = TVC / Q


TC = FC + TVC


SAC = TC / Q


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25

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


26

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


28

Let the production function of a firm be

Q = 5L1/2K1/2


Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K.

29

Let the production function of a firm be

Q = 2L2K2


Find out the maximum possible output that the firm can produce with 5 units of L and 2 units of K. What is the maximum possible output that the firm can produce with zero unit of L and 10 units of K?

Questions · 30
3. Production and Costs
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