The sum of fixed cost and variable cost at any rate of output is
A)Total variable cost.
B)Total cost.
C)Average total cost.
D)Average marginal cost.

Question

Quizplus · Accepted Answer

The sum of fixed cost and variable cost is known as the total cost. Total cost includes both fixed and variable expenses, so it is the best choice for this question. Average total cost and average marginal cost are calculated by dividing total cost by the quantity produced and the change in total cost due to a change in quantity produced, respectively. Total variable cost only includes variable expenses and does not include fixed expenses, so it is not the best choice.

The Sum of Fixed Cost and Variable Cost at Any