Question

Calculate Total variable cost and Marginal cost from the data given below. 

Output (units)	0	1	2	3
Total cost	40	60	78	97

Answer 1

TVC = TC − TFC
TFC is TC at zero level of output.

MC = TVC_n − TVC_{n − 1}

Output (units)	0	1	2	3
Total cost	40	60	78	97
TFC	40	40	40	40
TVC	0	20	38	57
MC	0	20	18	19