A firm's total cost (TC) equals the sum of its fixed cost plus its
A) variable cost.
B) marginal cost.
C) variable cost plus its marginal cost.
D) sunk cost plus its variable cost plus its marginal cost.

Question

Quizplus · Accepted Answer

Total cost (TC) is calculated by adding fixed cost and variable cost. Fixed costs do not change with the level of output, while variable costs do. Marginal cost is the cost of producing one more unit of a good, and sunk costs are costs that have already been incurred and cannot be recovered.

A Firm's Total Cost (TC) Equals the Sum of Its