Question

Complete the following table:

Units of output	TC	TFC	TVC	MC
0	45	–	–	–
1	75	–	–	–
2	100	–	–	–
3	120	–	–	–

Answer 1

Step 1: Find Total Fixed Cost (TFC)

Total Fixed Cost is the cost incurred even when output is zero, so: 

TFC = TC at output 0 = ₹ 45

This remains constant for all levels of output.

Step 2: Find Total Variable Cost (TVC) 

TVC = TC − TFC

• For Q = 0: TVC = 45 − 45 = ₹ 0
• For Q = 1: TVC = 75 − 45 = ₹ 30
• For Q = 2: TVC = 100 − 45 = ₹ 55
• For Q = 3: TVC = 120 − 45 = ₹ 75

Step 3: Find Marginal Cost (MC)

MC = Change in TC = ΔTC

• From 0 to 1 units: MC = 75 − 45 = ₹ 30
• From 1 to 2 units: MC = 100 − 75 = ₹ 25
• From 2 to 3 units: MC = 120 − 100 = ₹ 20

Units of output	TC (₹)	TFC (₹)	TVC (₹)	MC (₹)
0	45	45	0	–
1	75	45	30	30
2	100	45	55	25
3	120	45	75	20