Marginal TFC TVC TC AFC AVC AC ∆C MC

Variable Average
Output Product of
Fixed input input Productivity of
∆Q ∆L variable
(K) Q= Q(K,E) variable input
(L) input (MP =
(AP)
∆Q/∆L) All costs are in suitable scales in INR

6 1 65 10,000 5000

6 2 160 10,000 10000

6 3 300 10,000 15000

6 4 420 10,000 20000

6 5 550 10,000 25000

6 6 678 10,000 30000

6 7 763 10,000 35000

6 8 840 10,000 40000

6 9 882 10,000 45000

HS202_Principles of Economics_ Class Work

 Production Function APL and MPL

Observations AC, AVC, MC

HS202_Principles of Economics_ Class Work