Area under MC curve is equal to ........

Economics (CUET) Theory of Production and Cost

Area under MC curve is equal to:

TVC

AFC

AVC

- The area under the Marginal Cost (MC) curve represents the Total Variable Cost (TVC) when plotted with respect to output.

- Option 1: TVC - The correct answer. The integral of the MC curve over output gives the total variable cost.

- Option 2: AFC - Average Fixed Cost remains constant in total and does not relate to MC directly.

- Option 3: AVC - Average Variable Cost is the variable cost per unit of output, not the total area under MC.

- Option 4: AC - Average Cost includes both average fixed and variable costs, not directly the area under MC.

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