TC stands for total cost and q stands for quantity.
Total cost TC is the sum of total fixed cost (TFC) and total variable cost (TVC). Therefore, the total cost curve is above the total variable cost curve, and the vertical distance between the two curves is equal to the total fixed cost.
The characteristics of the total cost curve depend entirely on the characteristics of the total variable cost curve. Therefore, with the increase of output, the total cost curve first decreases and then increases.
Extended data:
It is found that effective cost analysis is the basic factor for enterprises to succeed in the fierce market competition. Imperfect cost analysis will lead to simple cost reduction, which will make the enterprise lose its vitality.
Establishing a scientific and reasonable cost analysis and control system will enable enterprise managers to clearly grasp the cost structure, profitability and the correct direction of decision-making, become the key support for internal decision-making, and fundamentally improve the cost situation of enterprises.
Platinum Consulting believes that correct cost analysis plays a very important role in whether a company is profitable. Due to the disadvantage of cost analysis, enterprises may make pricing mistakes because they don't allocate the expenses to different products reasonably, thus falling into the strange circle of multi-sales thanks for a long time.