Total variable cost (TVC) is that cost which changes as the level of output changes. Eg: Piece Labour Rate, Freight charges Outward, Raw Material Cost, Electricity etc. Total cost (TC) is the sum of total fixed cost and total variable cost.

Total product schedule of a firm at different levels of labour employment is given below. Calculate the firm's total variable cost, total cost, average cost, average variable cost and average fixed cost, if wage rate is Rs. 100 per day and total fixed cost is Rs. 1,000.

The cost function is a functional relationship between cost and output. It explains that the cost of production varies with the level of output, given other things remain the same (ceteris paribus). This can be mathematically written as: C = f(X) where C is the cost of production and X represents the level of output. Total Fixed Cost

Total Fixed cost Curve is a straight line parallel to x-axis as it remains constant at all levels of output. The average fixed cost (AFC) curve looks like a Rectangular Hyperbola. It happens because same amount of fixed cost is divided by increasing output.

A firm is operating with a Total Variable Cost of Rs 500 when 5 units of the given output are produced and the Total Fixed Costs are Rs 200, what will be the Average Total Cost of producing 5 units of output? i) Rs 140 ii) Rs 100 iii) Rs 120 iv) Rs 300

Correct option is D. Total Variable Cost + Total Fixed Cost (TVC+TFC) Total cost is an economic measure that sums all expenses paid to produce a product, purchase an investment, or acquire a piece of equipment including not only the initial cash outlay but also the opportunity cost of their choices. TC = TVC + TFC.

Fixed Cost is the cost which is unaffected by the change in production/output at a given capacity level. Variable Cost is the cost per unit which vary with the output. Total cost is the sum of fixed and variable cost.

It is also given that the average fixed cost at 4 units of output is Rs. 5. Find the TVC, TFC, AVC, AFC, SAC and SMC schedules of the firm for the corresponding values of output.

State the behavior of Total Variable Cost. Draw Total Variable Cost, Total Cost and Total Fixed Cost curves in a single diagram. Or. State the behavior of Total Variable Cost. Prepare a Schedule showing Total Variable Cost and Total Cost.

Cost analysis is all about the study of the behavior of cost with respect to various production criteria like the scale of operations, prices of the factors of production, size of output, etc. It is all about the financial aspects of production. In order to understand the cost function well, in this article, we will look at various cost concepts.