Average marginal cost theory
Ex' A farmer who produces 1000 quintals of excess grain in a year is spending 100000
rupees more. In such a case, how much should the farmer sell quintals of grain?
Ans: AIC= dTC/dQ
= dTC= 1000000
= dQ. = 1000
Q= Quantity
TC= Total Cost
100000/1000
100
Cost of 1 quintal grain= Rs.1000
