Costs

See how firms make sense of different costs and visualize them against output.

Costs

Firms' Decisions

The different manifestations of firms' costs

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Total Cost

A typical firm faces production cost, which can be classified as two types: Fixed and Variable Cost. A firm's total cost is the sum of both costs: Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC).

Step 1 of 11Total Cost