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Question
Calculate Total variable cost and Marginal cost from the data given below.
| Output (units) | 0 | 1 | 2 | 3 |
| Total cost | 40 | 60 | 78 | 97 |
Solution
TVC = TC − TFC
TFC is TC at zero level of output.
MC = TVCn − TVCn − 1
| Output (units) | 0 | 1 | 2 | 3 |
| Total cost | 40 | 60 | 78 | 97 |
| TFC | 40 | 40 | 40 | 40 |
| TVC | 0 | 20 | 38 | 57 |
| MC | 0 | 20 | 18 | 19 |
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RELATED QUESTIONS
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| 1 | 8 | 10 |
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|
L |
TPL |
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0 |
10 |
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1 |
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3 |
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|
L |
TPL |
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1 |
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2 |
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3 |
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4 |
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5 |
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Given that the fixed cost is Rs. 30. Calculate TVC and TC from the following data:
| Output (units) | 0 | 1 | 2 | 3 |
| Marginal Cost | 0 | 10 | 15 | 25 |
