Question
Complete the following table:
Output (units) Average Fixed Cost ₹ Average Variable Cost ₹ Marginal Cost ₹ Total Cost ₹
1 120 40 .... ....
2 60 56 .... 232
3 .... 54 .... ....
4 30 .... 54 ....
5 .... .... .... ....

Answer

Output (units) Average Fixed Cost ₹ Average Variable Cost ₹ Marginal Cost ₹ Total Cost ₹
1 120 40 40 160
2 60 56 72 232
3 40 54 50 282
4 30 54 54 336
5        

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If duopoly behaviour is one that is described by Cournot, the market demand curve is given by the equation q = 200 – 4p, and both the firms have zero costs, find the quantity supplied by each firm in equilibrium and the equilibrium market price.
Calculate:
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0
 
 
 
 
 
 
 
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2
 
 
 
 
 
 
 
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  • AVC for 4 units of output is Rs850.
  • TC rises by Rs 1,240 when the 6th unit of output is produced.
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  • TVC increases by Rs 1,535 when the seventh unit of output is produced.
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