[amp_mcq option1=”Total opportunity cost” option2=”Average cost” option3=”Total variable cost” option4=”General cost” correct=”option3″]<\/p>\n
The correct answer is C. Total variable cost.<\/p>\n
Total variable cost is the sum of all costs that vary with the quantity of output produced. It includes costs such as raw materials, labor, and energy. Total fixed cost is the sum of all costs that do not vary with the quantity of output produced. It includes costs such as rent, insurance, and depreciation. Therefore, the difference between total cost and total fixed cost is total variable cost.<\/p>\n
A. Total opportunity cost is the cost of not doing something else. For example, if you choose to go to college, the opportunity cost is the income you could have earned if you had worked instead.<\/p>\n
B. Average cost is total cost divided by the quantity of output produced. It is a measure of the cost per unit of output.<\/p>\n
D. General cost is a general term for any cost incurred in the production of goods or services. It can include both fixed and variable costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Total opportunity cost” option2=”Average cost” option3=”Total variable cost” option4=”General cost” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-59040","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n