Question: how do you calculate total cost in microeconomics?
Answer: Total product (= Output) = Quantity of goods.
Average Variable Cost (AVC) = Total Variable Cost / Quantity of goods (This formula is cyclic with the TVC one)
Average Fixed Cost (AFC) = ATC – AVC.
Total Cost = (AVC + AFC) X Quantity of goods.
Total Variable Cost = Variable cost per unit X Quantity of goods.