Difference between revisions of "Total variable cost"
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GregLarson (talk | contribs) (und, fixed cost) |
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| − | Total variable cost (TVC) is the cost that depends directly on the amount of output of a firm. It increases as output increases. | + | '''Total variable cost (TVC)''' is the [[cost]] that depends directly on the amount of output of a firm. It increases as output increases. For example, total variable costs include the expenses of [[fuel]], [[labor]] and raw materials. |
| − | + | This is opposed to [[total fixed cost]], which is the cost a firm has no matter what output is. | |
[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 23:15, November 3, 2007
Total variable cost (TVC) is the cost that depends directly on the amount of output of a firm. It increases as output increases. For example, total variable costs include the expenses of fuel, labor and raw materials.
This is opposed to total fixed cost, which is the cost a firm has no matter what output is.