passwella.
Menu

JAMB Economics 1992 Question 9

Question 9

Theory of Costs and Revenue

By definition, variable costs (VC) is related to total costs (TC) and fixed costs (FC) by the equation

  1. A.VC = TC + FC
  2. B.VC = TC − FC
  3. C.VC = TC/FC
  4. D.VC = (TC)(FC)
Show the answer and explanation

Answer: B (VC = TC − FC)

Explanation

TC = FC + VC, so VC = TC − FC.