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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View this answerThe 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...
See full answer below.
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Chapter 23 / Lesson 7Understand 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.