In comparing the changes in TC and TVC associated with an additional unit of output, we find that
A)the change in TVC is equal to MC, while the change in TC is equal to TFC.
B)the change in TC exceeds the change in TVC.
C)the change in TVC exceeds the change in TC.
D)both TC and TVC changes are equal to MC.

Question

Quizplus · Accepted Answer

The change in Total Cost (TC) and Total Variable Cost (TVC) associated with an additional unit of output is equal to the Marginal Cost (MC), because MC reflects the additional cost of producing one more unit, which affects both TC and TVC, but not Total Fixed Cost (TFC), which remains constant regardless of output level.

In Comparing the Changes in TC and TVC Associated with an Additional