Answer the following questions based on the given table. Unit of output TFC (Rs.) TVC (Rs.) TC (Rs.) : : : : : : : : 0 20 1 20 2 50 3 45 4 100 5 145 Complete the given table. [3] Draw total variable…

Completed Cost Table

Step 1: Identify Fixed Cost (TFC) Total Fixed Cost (TFC) remains constant at all levels of output. From the table, at 0 units, TFC = Rs. 20. Therefore, TFC = Rs. 20 for all units.

Step 2: Calculate Total Cost (TC) Formula: $TC=TFC+TVC$

• Unit 1: $TC=20+20=40$
• Unit 2: Given TC = 50. So, $TVC=TC-TFC=50-20=30$
• Unit 3: $TC=20+45=65$
• Unit 4: Given TC = 100. So, $TVC=100-20=80$
• Unit 5: $TC=20+145=165$

Step 3: Fill the missing values

Final Completed Table:

Graph of Total Variable Cost (TVC) and Total Cost (TC)

The graph plots Output (Q) on the X-axis and Cost (Rs.) on the Y-axis.

• TVC Curve: Starts from the origin (0,0) because variable cost is zero when output is zero. It rises as output increases.
• TC Curve: Starts from the Y-axis at Rs. 20 (the TFC). It runs parallel to the TVC curve, always maintaining a vertical distance equal to TFC (Rs. 20).

Key Observations:

1. The vertical distance between the TC and TVC curves is constant at Rs. 20, representing the Total Fixed Cost.
2. The TC curve does not start from the origin but from the TFC value on the Y-axis.
3. Both curves slope upwards, indicating that total costs increase with an increase in output.