If you know that when a firm produces 50 units of output, total costs are $8,000 and average fixed costs are $40, then total variable costs are:
If you know that when a firm produces 50 units of output, total costs are $8,000 and average fixed costs are $40, then total variable costs are:
Introduction
Total Variable Costs (TVC) is an economic concept that refers to the sum of all costs associated with the production of a good or service that are variable, or that change as the level of production changes. This includes both direct and indirect costs, such as raw materials, labor, rent, and utilities. TVC is important in understanding the cost structure of a business and can help in making decisions about pricing and production levels. TVC is calculated by taking the total cost of production and subtracting all fixed costs associated with production.
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