Question

From the following data, detemine the values of TFC, TVC, AC, AVC and AFC :

Answer 1

Formulae used :
(i) `TVC = TC - TFC` , (ii) `AC = TC ÷ "Output"`
(iii) `AVC = TVC ÷ "Output"` , (iv) `TFC = TC` at `0 "level of output"`
(v) `AFC = TFC ÷ "Output"`