What is Cost? – InterviewSolution

InterviewSolution

1.	What is Cost?
Answer» Cost is the sum total of explicit and implicit cost. Cost in economics includes actual expenditure on inputs (i.e. explicit cost) and the computed value of the inputs supplied by the owners (i.e. implicit cost).

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The curve in the following diagram is the most similar to a typical , A. Total Variable Cost CurveB. Marginal Cost CurveC. Total Cost CurveD. Average Variable Cost Curve
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Identify the following curve : A. Average Variable Cost CurveB. Total Variable Cost CurveC. Average Fixed Cost CurveD. Average Cost Curve
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Discuss the relationship between TVC and MC. OR Draw a diagram showing TVC in terms of the area under MC curve.