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
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