Nishant Tevleen and Manas are confused with the formula for deriving TC Nishant says TC TVC TFC ...........

Economics- Phase (I & II) Others

Nishant, Tevleen and Manas are confused with the formula for deriving TC:

Nishant says: TC= TVC + TFC &

Tavleen says : TC = AC × Output &

Manas says : TC = Ó MC + TFC

Identify who amongst them is correct.

Nishant

Manas

Tavleen

All of them

- Nishant's Statement: TC = TVC + TFC

- TC (Total Cost) is the sum of TVC (Total Variable Cost) and TFC (Total Fixed Cost).

- This is a correct representation of total cost.

- Tavleen's Statement: TC = AC × Output

- AC (Average Cost) multiplied by the Output gives the Total Cost.

- This statement is also correct under average cost calculation assumptions.

- Manas's Statement: TC = S MC + TFC

- TC can be calculated by adding up all marginal costs (S MC) and total fixed costs (TFC).

- This is valid when considering incremental cost analysis.

- Answer: All statements are correct in their contexts.

- Option 4: All of them is the correct choice.

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