Output

(Cups of tea per hour)

Total Cost in Rs.

0

30

1

33

2

38

3

45

4

54

5

65

6

78

7

93

8

110

9

129

10

150

If Yasir's fixed cost is Rs. 30

1. Calculate variable cost, average fixed cost, average variable cost, average total cost, and marginal cost.

1. What is the efficient scale of Yasir's tea stall?

1. Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the relationship between ATC and MC.