Choose the correct equation.
A)TFC = TC/Q
B)TFC = TC - AVC
C)TFC = TC - TVC
D)TFC = TVC/Q
E)TFC = TVC - TC

Question

Quizplus · Accepted Answer

TFC (Total Fixed Cost) equals TC (Total Cost) minus TVC (Total Variable Cost). This is because fixed costs are those that do not vary with the level of output, whereas total costs include both fixed and variable costs. By subtracting the TVC from the TC, we isolate the fixed component of the total cost.

Choose the Correct Equation