Total Cost Definition Explained
In economics and business, costs are typically categorized into fixed costs and variable costs.
- Total Fixed Cost (TFC): Costs that do not change with the level of output (e.g., rent, salaries).
- Total Variable Cost (TVC): Costs that change directly with the level of output (e.g., raw materials, direct labor).
The question asks for the term representing the sum of these two types of costs.
The fundamental formula for Total Cost (TC) is:
$ \text{TC} = \text{TFC} + \text{TVC} $
Therefore, the sum of total fixed cost and total variable cost is defined as total cost.
Similar Questions
- The law of comparative advantage is popularly attributed to ________.
- A Giffen good is related to which of the following?
Which of the following is an example of structural unemployment?
- ______ in economics is a curve that, when plotted on a graph, shows all the combinations of two factors that produce a given output.
- Which among the following organisations is the best example of an agreement between oligopolists?
- The curve that shows the levels of output that a profit maximising firm would choose to produce at different values of the market price is called the firm's ______.
- When a proportional increase in all input results in an increase in output by a larger proportion, the production function is said to display ______.
- Complete the sentence using the options given below.
The short-run marginal cost curve is 'U'-shaped due to ______. - The Total Revenue Curve of a firm shows the relationship between the _______ made by the firm and the output level of the firm.
- Which multiplier theory states that the economy will flourish the more the government spends?
Important Questions from Microeconomics
Which of the following statement is correct?
I. Indifference curves are sloping from left to right.
II. Higher indifference curve gives a higher level of utility.
Match List I with List II:
List- I
Shape of revenue curve of the firm
List – II
Market structure
A.
Kinked revenue-curve (I)
Monopolistic competition B.
Infinitely elastic straight line curve (II)
Perfect competition C.
Relatively less elastic curve (III)
Oligopoly D.
Relatively high elastic curve (IV)
Monopoly.
Choose the correct answer from the options given below -Marginal revenue of a firm is constant throughout under _________.
The cost curve which is a rectangular hyperbola is:
Rare of inflation is equal to:
[A = Price Index]
