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Problem-
A manager in a firm has been assigned a job to find costs at different levels of output. He is provided with the following table and asked to fill up the missing values since there was no information available.
Output
Total cost
Fixed cost
Variable cost
Average variable cost
Average total cost
1
2000
500
2
2500
3
2800
4
3300
5
4000
6
4800
7
6000
He was also asked to find the marginal cost at output level of 5 units.
Additional Information-
The problem belongs to Economics, particularly to Micro-economics and it is discuss about a scenario where a manager of a firm has to find costs of different levels of output with the given data of total cost and fixed cost.
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