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Using schedule and diagram discuss the …

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Using schedule and diagram discuss the relationship between TC , TFC , TVC .

Posted by @_ Dreamer 4 years, 11 months ago

CBSE > Class 11 > Economics

1 answers

Gaurav Seth 4 years, 11 months ago

Output	Fixed Cost	Variable Cost	Total Cost
0	40	0	40
1	40	20	60
2	40	30	70
3	40	32	72
4	40	34	74
5	40	36	76
6	40	38	78
7	40	40	80
8	40	46	86

We see that the Fixed Cost remains the same even as production increases from 0 to 8 units. Thus the value of FC = 40
It can be noted that the Variable Cost increases as the output increases. The VC increases at a diminishing rate till 7 units of output, after which it starts increasing at an increasing rate.
The final column shows the Total Cost which is the sum of FC and VC and increases as the output increases.

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