State whether the following statement are TRUE and FALSE. Total Cost is the total expenditure incurred by a firm.

Chapter 5 - Producer's Behaviour Economics Solutions for Class 12 Commerce Economics 


State whether the following statement are TRUE and FALSE.

Total Cost is the total expenditure incurred by a firm.

Answer:  Total Cost is the total expenditure incurred by a firm. - True
Explanation:
Yes. Total cost refers to the total expenditure incurred by a firm to carry out the production of goods and services. It is the aggregate of expenditure incurred on fixed factors as well as variable factors. That is,

TC = TFC + TVC

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