Question
Question 3 [20] The Table below shows the quantity produced (Q), AFC and AVC, Q AFC AVC 1 50.0 100 2 25.0 50 3 16.7
Question 3 [20]
The Table below shows the quantity produced (Q), AFC and AVC,
| Q | AFC | AVC |
| 1 | 50.0 | 100 |
| 2 | 25.0 | 50 |
| 3 | 16.7 | 66.67 |
| 4 | 12.5 | 65 |
| 5 | 10.0 | 68 |
| 6 | 8.3 | 73.33 |
| 7 | 7.1 | 80 |
| 8 | 6.3 | 87.5 |
| 9 | 5.6 | 90 |
Compute the TC, TFC and TVC for each of the output levels. Does it make any economic sense for the farmer to produce 8 units? Explain the reasons for your answer.
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E Marketing
Authors: Raymond Frost
7th Edition INTERNATIONAL EDITION
0132953443, 978-0132953443
