MCQ
TVC can be calculated as:
  • A
    TC - TFC
  • TC - TFC and $\Sigma M C$
  • C
    $\frac{A V C}{Q}$
  • D
    $\Sigma MC$

Answer

Correct option: B.
TC - TFC and $\Sigma M C$
(b) $TC - TFC$ and $\Sigma MC$
Explanation: Total cost is the sum total of total fixed cost and total variable cost. TVC= TC- TFC
Marginal cost is an additional cost and additional cost cannot be fixed cost, it can be a variable cost. Accordingly, the sum total of marginal costs corresponding to different units of output becomeS TVC.

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