Based on the table above, what is the total variable cost (TVC) when 'Q' is three? A) 600 B) 1000...

Question:

Total Costs (in Dollars) Total Costs (in Dollars) Total Costs (in Dollars) Average Costs (in Dollars) Average Costs (in Dollars) Average Costs (in Dollars)
Quantity Total Cost Total Fixed Cost Total Variable Cost Average Total Cost Average Fixed Cost Average Variable Cost Marginal Cost (in Dollars)
Q TC TFC TVC ATC AFC AVC MC
0 $1,200 Undefined Undefined Undefined N/a
1 $2,000
2 $2,600
3 $3,000
4 $3,300

Based on the table above, what is the total variable cost (TVC) when 'Q' is three?

A) 600

B) 1000

C) 1200

D) 1800

E) 3000

Total Variable Cost Level:

The total variable cost level is a concept which measures the aggregate expenditure been incurred by the producer on the variable factor resources employed in the production process. Total variable cost level is computed as :

TVC = TC - TFC

Where,

TVC = total variable cost level

TC = total cost level

TFC = Total fixed cost level

Answer and Explanation: 1

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The total variable cost level is computed as :

TVC = TC - TFC

Now in the above-mentioned case study, the total fixed cost level can be completed as...

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Variable Cost: Definition, Formula & Examples

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Chapter 23 / Lesson 7
70K

Understand variable cost in business. Learn the definition of variable cost, the variable cost formula, and how to use the formula to calculate the variable cost.


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