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What will be the TVC if we produce 2 units?
Units 0 1 2
TC 20 37 50
Units 0 1 2
TC 20 37 50
- a)15
- b)05
- c)17
- d)30
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What will be the TVC if we produce 2 units?Units 0 1 2TC 20 37 50a)...
To calculate the TVC (total variable cost) for producing 2 units, we need to subtract the total cost of producing 1 unit (TC for 1 unit) from the total cost of producing 2 units (TC for 2 units).
TC for 1 unit = 37 - 20 = 17 (subtracting the TC for 0 units from the TC for 1 unit)
TC for 2 units = 50 - 20 = 30 (subtracting the TC for 0 units from the TC for 2 units)
TVC for producing 2 units = TC for 2 units - TC for 1 unit = 30 - 17 = 13
Therefore, none of the given options (a, b, c) are correct, and the correct answer is option 'D' (30).
TC for 1 unit = 37 - 20 = 17 (subtracting the TC for 0 units from the TC for 1 unit)
TC for 2 units = 50 - 20 = 30 (subtracting the TC for 0 units from the TC for 2 units)
TVC for producing 2 units = TC for 2 units - TC for 1 unit = 30 - 17 = 13
Therefore, none of the given options (a, b, c) are correct, and the correct answer is option 'D' (30).
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What will be the TVC if we produce 2 units?Units 0 1 2TC 20 37 50a)...
Well lets solve this step by... As we know that TFC remains same at all levels of output i.e TFC =TC at 0 level.. Hence TFC=20..nw as we hve to find out TVC at 2nd unit.. So just use the Formula TVC =TC-TFC =50-20=30..hence TVC at 2nd unit is Rs 30...
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What will be the TVC if we produce 2 units?Units 0 1 2TC 20 37 50a)15b)05c)17d)30Correct answer is option 'D'. Can you explain this answer?
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