how we calculate total cost when output and labor is given only
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Expert's answer
2013-05-14T11:37:45-0400
In economics, and cost accounting, total cost (TC) describes the total economic cost of production and is made up of variable costs, which vary according to the quantity of a good produced and include inputs such as labor and raw materials, plus fixed costs, which are independent of the quantity of a good produced and include inputs (capital) that cannot be varied in the short term, such as buildings and machinery. Total cost in economics includes the total opportunity cost of each factor of production as part of its fixed or variable costs.
Use the fixed cost to multiply the total numbers of output per unit this in turn gives you the total variable cost per unit produced by x the number quantity of labor employed.
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