Supply Analysis — Economics STD 12 Commerce / Arts — Question

1. TC is the total expenditure incurred by a firm on the factors of production required for production of goods and services.
2. TC is sum total of Total Fixed Cost (TFC) and Total Variable Cost (TVC). TC=TFC+TVC
3. TC increases with the increase in output.
4. TC depends on factors like cost of raw material, cost of factors like labour, land, capital, technology, cost of advertisement, management, etc.
5. When TC > TR firm faces loss.

Total Revenue (TR) :

1. TR refers to the amount received (income earned) by a firm from the sale of given quantity of a commodity at different price.
2. TR is calculated by multiplying price with the quantity sold. TR = Price X Total Quantity
3. TR increases with increase in sale.
4. Total Revenue (TR) depends on the price of product, demand for the product, etc.
5. When TR > TC firm earns profit.