Complete the following table.
Output A.V.C TC MC
1. --------- 60 20
2. 18 -------- -------
3. --------- --------- 18
4. 20 120 ---------
5. 22 --------- ----------
Output | Average Variable Cost
| Total Cost
| Total Fixed Cost | TVC
| Marginal Cost
|
(Units) | (Rs) | (Rs) | (Rs) | (Rs) | (Rs) |
1 | 20 (= 20÷1) | 60 | 40 | 20 | 20 |
2 | 18 | 76(= 36 +40) | 40 | 36(= 18×2) | 16(= 76–60) |
3 | 18( 54÷3) | 94(= 76 + 18) | 40 | 54 | 18 |
4 | 20 | 120 | 40 | 80 | 26(= 120–94) |
5 | 22 | 150(= 110+40) | 40 | 110 | 30(= 150–120) |
We know,
TVC for the Fourth unit of output = 20 × 4 = 80
Now,
TC = TVC + TFC
⇒120 = 80 + TFC
⇒ TFC = 40 units