Question

13. Tick the correct in the following:
(a) TVC = TC - TFC (b) TC = TVC - TFC
(c) TFC = TVC + TC (d) TC = TVC X TFC​

Answer 1

Answer:

a tvc= tc- tfc

tvc + tfc is tc

Answer 2

Answer:

correct answer is (a) TVC = TC - TFC

Explanation:

TC ( Total Cost) :

Total cost is an economic measure that sums all expenses paid to produce a product, purchase an investment, or acquire a piece of equipment including not only the initial cash outlay but also the opportunity cost of their choices. it measures the total fixed, variable, and overhead expenses associated with producing a good. This is a fundamental concept for business owners and executives because it allows them to track the combined costs of their operations.

TFC ( Total Fixed Cost):

Total fixed cost is the total amount of money a business must pay to keep their operations running regardless of how many products they make or sell. Total fixed cost does not change regardless of production or lack of production. Fixed costs are those that still exist even when production is at zero.

TVC ( Total Variable Cost) :

Total variable cost is the aggregate amount of all variable costs associated with the cost of goods sold in a reporting period. It is a key component in the analysis of corporate profitability. The components of total variable cost are only those costs that vary in relation to production or sales volume. It is not compiled at the individual unit level.

TC , TFC , TVC are related by the formulae:

TC = TFC + TVC

TVC = TC - TFC