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Economics 101: Total Cost | SterlingTerrell.net

Economics 101: Total Cost


What is defined as a total cost?

Total Cost is the total expense related to the production of a good or service.

Total cost is the sum of Fixed Cost and Variable Cost.

This is where:

Profit = Total Revenue - Total Cost

Where:

Total Revenue = Quantity Sold * Price

And:

Total Cost = Fixed Cost + Variable Cost