Lawrence Jim B. Bayubay BPA2 Learning Module No.

8
Basic Economics with Taxation Date: March 15, 2021
And Land Reform
I. Learning Activities:
1.1 Instruction: Analyze and fill out the tabular represent below using the given formulae.
Q TC TFC TVC ATC AFC AVC MC
0 Php 3.00 Php 4.00 - - -
1 3.30 4.00 Php 0.30 3.30 Php3.00 Php0.30 Php 0.30

2 3.80 4.00 0.80 1.9 1.50 0.40 0.50

3 4.50 4.00 1.50 1.5 1.00 0.50 0.70
4 5.40 4.00 2.40 1.35 0.75 0.60 0.90
5 6.50 4.00 3.50 1.30 0.65 0.70 1.10

1.2 Instructions: Show your solutions in finding the answers that complete the table.
Given: TFC= Php 4.00 (There is no need to change in the TOTAL FIXED COST)
AVC=0.30, AVC=0.40, AVC=0.50, AVC=0.60 , AVC=0.70
ATC=3.30, ATC=1.9, ATC=1.5 , ATC=1.35 , ATC=1.30

Now, let`s find out the AFC by subtracting the ATC AND AVC.
To determine the problem, let us use the Formula: AFC=ATC-AVC

Sulotions:
AFC=ATC-AVC AFC=ATC-AVC AFC=ATC-AVC AFC=ATC-AVC AFC=ATC-AVC
=3.30 - Php0.30 =1.9 - 0.40 =1.5 - 0.50 =1.35 - 0.60 =1.30-0.70
AFC = Php3.00 AFC = Php3.00 AFC = Php1.00 AFC = Php0.75 AFC = Php0.65

ENRICHMENT/APPLICATION ACTIVITIES
 In your perception, what is the relevance of learning the relationship between production and
cost?
(ANSWER)
The cost is what the firm pays for producing and selling its products. Recall that production involves
the firm converting inputs to outputs. Each of those inputs has a cost to the firm. The sum of all those costs
is total cost.
There should be a balance relationship and interconnection between the two: Production and cost.
If the production would be to costly, who will symphatize? If the cost is too high while the production is
limited, who would benifit from these? Therefore, the producers must be sensitive to the needs, context and
circumstances of the people. We need to produce in order for the people to satisfy their needs but It will do
harm if we do the business out of greed and self interest!