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Total Product (Q) a) Given the following information for Kamaguta Traders. Total Fixed Cost Total Variable Costs (TFC) (TVC) 0 100 0 1 100
Total Product (Q) a) Given the following information for Kamaguta Traders. Total Fixed Cost Total Variable Costs (TFC) (TVC) 0 100 0 1 100 90 2 100 170 3 100 240 5 45 100 300 100 370 6 100 450 7 100 540 8 100 650 9 100 780 10 100 930 Derive the total costs, average fixed costs, average variable cost, average total cost and the marginal costs. [8 Marks] b) Explain the law of diminishing returns in production. [3 Marks] c) Describe the concepts of marginal productivity and marginal costs.
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