Question 31
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 average variable cost of producing 2 units?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
TVC₂ = 110 − 60 = ₹50; AVC₂ = 50 ÷ 2 = ₹25.
Worth noting
₹55 is AC (110 ÷ 2), which includes fixed cost.
- Concept
- AVC from TC
- Typical timeTypical
- 70 s
- Your timeYours
- —
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