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Total Cost Formulaposted by Jared Jones , Aug 15, 2017, 7:12 AMClass,As described in this week's readings, total costs are made up of both fixed and variable components.It's important that you think of total cost as a mathematical formula, which would look something likethis:Total Costs = Fixed Costs + Variable Costs or TC = FC + VCThe reasons this is important is because often you might know certain parts of the formula, but not others. For example, you might know what your total costs are and what fixed costs are, and of course that would allow you to solve for variable costs.Fixed costs remain the same and are unaffected by production output. In contrast, variable costs differ indirect amount to the numbers of output. Examples of variable costs are raw materials, packaging and
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