Question

TFC + TVC = ?

• A. Total cost
• B. Average cost
• C. Marginal cost
• D. None of these

Hint:

Total Cost has two parts: Fixed costs + Variable costs.

Answer 1

The Correct Option is A

This is the fundamental definition of total cost. The total cost (TC) of production is the sum of all costs incurred. It is broken down into:

Total Fixed Costs (TFC): Costs that do not change with the level of output.
Total Variable Costs (TVC): Costs that change with the level of output.
Therefore, TFC + TVC = TC.