question_answer

Complete the following table:

Output    (units)(Q)	Total Revenue (TR)(Rs.)	Marginal Revenue (MR)(Rs.)	Average Revenue (AR)(Rs.)
1	-	-	8
2	-	4	-
3	12	-	-
4	8	-	2

Or A firm's Average Fixed Cost (AFC) of producing 2 units of a good is Rs. 9 and given below its Total Cost (TC) schedule. Calculate its Average Variable Cost (AVC) and Marginal Cost (MC) for each of the given level of output.

Output (Units)	Total Cost (Rs.)
1	23
2	27
3	30

Answer:

Output(units)(Q)	Total Revenue (TR)(Rs.)	Marginal Revenue (MR)(Rs.)	Average Revenue (AR)(Rs.)
1	8	8	8
2	12	4	6
3	12	0	4
4	8	-4	2

Formulae Used Total Revenue (TR) = Average Revenue (AR)\[\times \]Output (0) Marginal Revenue (MR) = \[T{{R}_{n}}-T{{R}_{n-1}}\] Average Revenue (AR) =\[\frac{Total\,\operatorname{Re}venue\,(TR)}{Output(Q)}\] Or

Output(units)	TC (Rs.)	TFC(Rs.)	TVC (Rs.)	AVC (Rs.)	MC(Rs)
1	23	18	5	5	5
2	27	18	9	4.5	4
3	30	18	12	4	3

Formulae Used Total Variable Cost (TVC) \[=Total\,\,Cost\,\,(TC)-Total\,\,Fixed\,\,Cost\,\,(TFC)\] Total Fixed Cost (TFC) \[=Average\,\,Fixed\,\,Cost\times Output,\,\,i.e.\,\,9\times 2\] Average Variable Cost (AVC) = \[\frac{Total\,\,Variable\,\,Cost\,\,(TVC)}{Output\,\,(Q)}\]                                           Marginal Cost =\[TV{{C}_{n}}-TV{{C}_{n-1}}\]