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Question
How is TVC derived from MC?
Short Answer
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Solution
To calculate Total Variable Cost (TVC) from Marginal Cost (MC), we add (sum) the marginal costs for each unit of output. This is because marginal cost refers to the additional cost of generating one more unit of output.
TVCn = MC1 + MC2 + ⋯ + MCn
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Chapter 8: Cost and Revenue Analysis - TEST YOURSELF QUESTIONS [Page 161]
