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WAEC Economics 1993 Question 18

Question 18

Theory of Costs and Revenue

Which of the following is the correct way to calculated total cost?

  1. A.Addition of fixed cost to variable cost
  2. B.Division of total cost by total output
  3. C.Multiplication of fixed cost by variable cost
  4. D.Subtraction of ficed cost from total cost
  5. E.Addition of marginal cost to average cost.
Show the answer and explanation

Answer: A (Addition of fixed cost to variable cost)

Explanation

Total cost = total fixed cost + total variable cost.