Question

Complete the following Table : 

 

Hint:

In exams, if the question doesn't provide Total Fixed Cost (TFC), the TC for the first unit is equal to its MC. If TFC was given as 10, then TC at unit 1 would be 10 (Fixed) + 30 (Marginal) = 40.

Answer 1

Step 1: Understanding the Concept:
Marginal Cost (MC) is the addition made to the Total Cost by producing one additional unit of output.
Assuming there is no Fixed Cost mentioned (or calculating Total Variable Cost which is often treated as TC in such basic tables), TC is the cumulative sum of MC.
Step 2: Key Formula or Approach:
The relationship is given by:
\[ TC_n = MC_1 + MC_2 + ... + MC_n \]
Or simply, \( TC_n = TC_{n-1} + MC_n \).
Step 3: Detailed Explanation:
Let's calculate the TC for each unit step-by-step:
1. For Unit 1: \( TC = MC_1 = 30 \).
2. For Unit 2: \( TC = TC \text{ of unit 1} + MC \text{ of unit 2} = 30 + 25 = 55 \).
3. For Unit 3: \( TC = TC \text{ of unit 2} + MC \text{ of unit 3} = 55 + 20 = 75 \).
4. For Unit 4: \( TC = TC \text{ of unit 3} + MC \text{ of unit 4} = 75 + 10 = 85 \).
Step 4: Final Answer:
The completed row for TC is: 30, 55, 75, 85.