question_answer

Answer the following questions: (i) Complete the following table:

Output (units)	Total Cost (TC)(Rs.)		Total Variable Cost (TVC)(Rs.)	Marginal Cost(MC)(Rs.)
0	12		.............	.............
1	18		.............	.............
2	21		.............	.............

 (ii) Calculate total product and marginal product of a firm, if its average product is as under:

Labour	1	2	3	4	5	6
Average Product	10	12	14	12	10	8

Answer:

Output (units)	Total Cost (TC) (Rs.)	Total Variable Cost (TVC) (Rs.)	Total Fixed Cost (TFC) (Rs.)	Marginal Cost (Mc) (Rs.)
0	12	0	12	?
1	18	\[18-12=6\]	12	\[6-0=6\]
2	21	\[21-12=9\]	12	\[9-6=3\]

Formulae used Total Variable Cost (TVC) =Total Cost (TC) \[-\]Total Fixed Cost (TFC) Marginal Cost (MC) \[=TV{{C}_{n}}-TV{{C}_{n-1}}\] (ii)        

Units of Labour (L)	Average Product (AP)	Total Product (TP)	Marginal Product (MP)
1	10	10	10
2	12	24	14
3	14	42	18
4	12	48	6
5	10	50	2
6	8	48	\[-2\]

Formulae Used Total product (TP) = Average Product (AP) \[\times \]Units of Labour (L) Marginal Product (MP)\[=T{{P}_{n}}-T{{P}_{n-1}}\]