Q.A firm's Total Fixed Cost is Rs 60. Its Total Variable Cost schedule is: $Q=1 \to TVC=30$; $Q=2 \to 50$; $Q=3 \to 66$; $Q=4 \to 88$; $Q=5 \to 118$; $Q=6 \to 158$. Prepare a full cost schedule showing $TC$, $AFC$, $AVC$, $AC$ and $MC$ at each output.

Total cost adds fixed to variable cost; the per-unit costs are each total divided by output, and marginal cost is the addition to total cost per extra unit.

Given: $TFC=60$ (constant) and the TVC schedule for $Q=1$ to $6$.

Step 1 — Total Cost, $TC=TFC+TVC$:

• $Q=1$: $60+30=90$; $Q=2$: $60+50=110$; $Q=3$: $60+66=126$; $Q=4$: $60+88=148$; $Q=5$: $60+118=178$; $Q=6$: $60+158=218$.

Step 2 — Average Fixed Cost, $AFC=TFC/Q$:

• $60, 30, 20, 15, 12, 10$ for $Q=1\ldots6$.

Step 3 — Average Variable Cost, $AVC=TVC/Q$:

• $Q=1$: $30/1=30$; $Q=2$: $50/2=25$; $Q=3$: $66/3=22$; $Q=4$: $88/4=22$; $Q=5$: $118/5=23.6$; $Q=6$: $158/6\approx26.33$.

Step 4 — Average (Total) Cost, $AC=TC/Q$:

• $Q=1$: $90$; $Q=2$: $55$; $Q=3$: $42$; $Q=4$: $37$; $Q=5$: $35.6$; $Q=6$: $\approx36.33$.

Step 5 — Marginal Cost, $MC=TC_n-TC_{n-1}$:

• $Q=1$: $90-60=30$ (fixed cost is the TC at zero output); $Q=2$: $110-90=20$; $Q=3$: $126-110=16$; $Q=4$: $148-126=22$; $Q=5$: $178-148=30$; $Q=6$: $218-178=40$.

Step 6 — Assemble the schedule:

Alternative for MC: since $TFC$ is constant, $MC$ can be read straight off the TVC column as $\Delta TVC$ without first building TC — th …

Computing MC as $TC/Q$ (that is AC, not MC) or forgetting that at $Q=1$ the marginal cost is $TC_1-TFC$ because total cost at …