Which equation is used by a manager when considering total cost?
A) total costs (TC) = consumption (C) + investment (I) + government (G)
B) total costs (TC) = average fixed costs (AFC) + number of workers
C) total costs (TC) = average total costs (ATC)
D) total costs (TC) = total fixed costs (TFC) + total variable costs (TVC)

Question

Quizplus · Accepted Answer

Total cost (TC) is the sum of total fixed costs (TFC) and total variable costs (TVC). This equation is used by managers to determine the total cost of production, which helps them make decisions about pricing, production levels, and profitability. Option A is the equation for calculating gross domestic product (GDP); option B is the equation for calculating average variable costs (AVC); option C is the equation for calculating average total costs (ATC).

Which Equation Is Used by a Manager When Considering Total