ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Step 1: Determine the total cost of production of a given product or service. The total cost is the sum of the fixed costs and variable costs. Step 2: Determine the unit cost by dividing the aforementioned total cost by the number of units produced.

Detailed explanation-2: -Total cost, on the other hand, is the cost resulting from the sum of the total fixed and variable costs. It is shown as TC (total cost). Total Cost (TC) is calculated by adding the two together.

Detailed explanation-3: -Total cost – The sum of fixed cost and variable cost. Marginal costs – The extra (additional) cost of producing one more unit of output; equal to the change in total cost divided by the change in output (and, in the short run, to the change in total variable cost divided by the change in output).

Detailed explanation-4: -Variable costs are the sum of all labor and materials required to produce a unit of your product. Your total variable cost is equal to the variable cost per unit, multiplied by the number of units produced. Your average variable cost is equal to your total variable cost, divided by the number of units produced.

Detailed explanation-5: -Fixed costs = Total production costs-(Variable cost per unit * Number of units produced) $4, 000 total production costs-($3 * 1, 000 tacos) = $1, 000 fixed cost. Average fixed cost = Total fixed cost / Total number of units produced. More items