3.6.2 Calculation of costs of production
Topic 3.6.2 - Calculation of costs of production The learning outcomes for this section of the Cambridge IGCSE Economics (0455) syllabus are: ATC = TC ÷ Q or ATC = AFC + AVC TFC = ATC × Q or TFC = TC – TVC AFC = TFC ÷ Q or AFC = ATC – AVC TVC = AVC × Q or TVC = TC – TFC AVC = TVC ÷ Q or AVC = ATC – AFC A firm produces four units of output at an average total cost (ATC) of $18. The firm subsequently makes a fifth unit...