Total cost:
Total cost is the summation of total variable cost and total fixed cost.
TC = TFC + TVC Here,
TC = Total costTC = Total Fixed costTVC = Total variable costIt must be observed that total fixed cost is similar irrespective of the level of output. Thus a change in total cost is influenced by the change in variable cost simply. The relationship among total fixed cost, total variable cost and total cost will be apparent from the figure shown below:
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