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Calculate TC if TFC at 0 level of output is 60 rupees Output : 0 , 1, 2, 3, 4, 5, 6 TVC : 0, 30,40,45,55,75,120?
Most Upvoted Answer
Calculate TC if TFC at 0 level of output is 60 rupees Output : 0 , 1, ...
TC = 60,90,100,105,115,135,180
TFC remains constant
and we use formula for this question is
TC=TFC+TVC
Community Answer
Calculate TC if TFC at 0 level of output is 60 rupees Output : 0 , 1, ...
Calculating Total Cost (TC) with given Total Fixed Cost (TFC) and Total Variable Cost (TVC)

To calculate the Total Cost (TC) at different levels of output, we need to consider the Total Fixed Cost (TFC) and the Total Variable Cost (TVC) at each level.

Level of Output: 0, 1, 2, 3, 4, 5, 6
Total Fixed Cost (TFC): 60 rupees
Total Variable Cost (TVC): 0, 30, 40, 45, 55, 75, 120 rupees

Step 1: Calculate Total Cost (TC) at each level of output by adding TFC and TVC.
Step 2: Present the results in a table.

Calculations and Table:

| Level of Output | TFC (rupees) | TVC (rupees) | TC (rupees) |
|-----------------|--------------|--------------|-------------|
| 0 | 60 | 0 | 60 |
| 1 | 60 | 30 | 90 |
| 2 | 60 | 40 | 100 |
| 3 | 60 | 45 | 105 |
| 4 | 60 | 55 | 115 |
| 5 | 60 | 75 | 135 |
| 6 | 60 | 120 | 180 |

Explanation:

At 0 level of output, the Total Fixed Cost (TFC) is given as 60 rupees. Since there is no production at this level, the Total Variable Cost (TVC) is 0. Therefore, the Total Cost (TC) at 0 level of output is equal to the Total Fixed Cost (TFC) which is 60 rupees.

For the subsequent levels of output, we add the Total Fixed Cost (TFC) and the Total Variable Cost (TVC) to calculate the Total Cost (TC). As the level of output increases, both the Total Fixed Cost (TFC) and the Total Variable Cost (TVC) also increase, resulting in an increase in the Total Cost (TC).

In the given table, we can observe that as the level of output increases from 1 to 6, the Total Cost (TC) also increases. This is because the Total Variable Cost (TVC) increases with the increase in output, while the Total Fixed Cost (TFC) remains constant.

Therefore, the Total Cost (TC) at different levels of output can be calculated by adding the Total Fixed Cost (TFC) and the Total Variable Cost (TVC) at each level.
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Calculate TC if TFC at 0 level of output is 60 rupees Output : 0 , 1, 2, 3, 4, 5, 6 TVC : 0, 30,40,45,55,75,120?
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