Multiple choice

Use the following data to answer the questions: Total output (Units) 0 10 20 30 Total cost (Rs.) 100 200 290 390 As per table, variable cost at 20 units of output is ______.

  1. 0

  2. 100

  3. 90

  4. 190
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D Correct answer
Explanation

Total cost = Fixed cost + Variable cost. At 0 units, TC = 100, so Fixed cost = 100. At 20 units, TC = 290. Variable cost = 290 - 100 = 190.

AI explanation

Variable cost is calculated by subtracting the fixed cost from the total cost. From the table at zero output, the fixed cost is Rs 100. At 20 units of output, the total cost is Rs 290, so the variable cost is 290 minus 100 = 190. The result is 190.

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