The cost function of a firm is given below: (i) Total Fixed Cost. (ii) Total Variable Cost.

Question

The cost function of a firm is given below:

Output	0	1	2	3	4
Total Cost(Rs)	60	80	100	111	116

Find: 

(i) Total Fixed Cost. 

(ii) Total Variable Cost. 

(iii) Average Fixed Cost. 

(iv) Average Variable Cost. 

(v) Marginal Cost.

Answer 1

Output	TC	TFC	TVC	AFC	AVC	MC
0 1 2 3 4	60 80 100 111 116	60 60 60 60 60	- 20 40 51 56	- 60 30 20 20	- 20 20 17 14	- 20 20 11 5