Illustrates terms total cost, average cost and marginal cost

Question

Illustrates the terms total cost, average cost and also marginal cost?

Answer 1

Total cost:

It implies the sum of total fixed cost and total variable cost. Conversely, this is the aggregate money cost of production of commodity.

Average cost:

It is the cost per unit of output. It is total cost divided through number of units produced:

Average cost = total average fixed cost + total average variable cost

Marginal cost:

It is the additional cost to total cost while an additional unit is produced.