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AFTERSCHO☺OL
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CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
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entrepreneurship & spiritual entrepreneurship
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0 100
10 210
20 300
30 400
40 540
50 790
60 1060
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
If price of DahiBada is Rs. 14 each,
what is the best output?
Qty TC FC VC AVC AFC MC TC TR Profit
0 100 0 -100
30 400 420 20
40 540 560 20
units TC
0 240
1 330
2 410
3 480
4 540
5 610
6 690
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Solution
units TC MC
0 240
1 330 90
2 410 80
3 480 70
4 540 60
5 610 70
6 690 80
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Solution …
• As in the previous graph we can see that
the marginal cost (MC) is reducing initially
- but it starts increasing when we make 5th
unit. Marginal returns decrease when MC
starts increasing. Thus marginal returns
start decreasing from 5th unit. Answer.