Total cost is calculated as
A)average fixed cost plus average variable cost
B)fixed cost plus variable cost
C)the additional cost of the last unit produced
D)marginal cost plus variable cost
E)marginal cost plus fixed cost

Question

Quizplus · Accepted Answer

Total cost is the sum of fixed cost and variable cost. Average fixed cost and average variable cost are not used to calculate total cost. The additional cost of the last unit produced is the marginal cost, but it should be added to the previous total cost to calculate the new total cost.

Total Cost Is Calculated as