Question 14
MediumOriginal questionA firm's short-run total cost schedule is given.
| Output (units) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|---|
| Total cost (₹) | 60 | 90 | 110 | 126 | 140 | 160 | 192 | 242 |
What is the total variable cost of producing 7 units?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
TVC₇ = TC₇ − TFC = 242 − 60 = ₹182.
Worth noting
₹50 is the MC of the 7th unit; ₹26 is AVC at 7 units.
- Concept
- TVC at a higher output
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Cost Curves, at your own pace.