If a firm produces 10 units,TC=$100.When the firm increase its output to 15 units,TC= $150.The firm's variable costs equal to
A)$25
B)$0
C)$50
D)$100

Question

Quizplus · Accepted Answer

Variable cost equals the difference between total cost at two levels of production, divided by the change in quantity produced: 
Variable cost = (TC at 15 units - TC at 10 units) / (15-10) 
Variable cost = ($150-$100) / 5 
Variable cost = $50

If a Firm Produces 10 Units,TC=$100