# Producer Behaviour and Supply-Cost (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 43 - 47 of 47

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## Question number: 43

Essay Question▾

### Describe in Detail

Distinguish between Average cost and Marginal cost giving an example.

### Explanation

 Characteristics average cost marginal cost Definition average cost is the cost of producing amount of output divided by the cost per unit When a producer increases its output by one unit, there is a change in the total cost of producing that commodity this change in cost is known as marginal cost. Formula AC= MC =

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## Question number: 44

Essay Question▾

### Describe in Detail

Calculate ‘total variable cost’ and ‘total cost’ from the following cost schedule of a firm whose fixed costs are Rs. 10.

 Output (Units) 1 2 3 4 Marginal Cost (Rs): 6 5 4 6

### Explanation

 Output (units) Marginal cost (RS) Fixed cost Total variable cost Total cost 1 6 10 6 16 2 5 10 11 21 3 4 10 15 25 4 6 10 21 31

In that Total va

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## Question number: 45

Essay Question▾

### Describe in Detail

Explain the relation between marginal cost and average cost.

### Explanation

Relationship between Marginal cost and Average cost is:

Both marginal cost and Average cost are obtain from Total cost and Average cost refers to Total cost per unit of output and marginal cost refers to addition to total cost when one more unit of output is composed and both Average cost and Marginal cost curves are U- shaped because of Law of

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## Question number: 46

### Write in Short

Give meaning of Cost