EXPLAIN THE RELATIONSHIP BETWEEN TVC AND MC
Sum total of Marginal Cost is Total Variable Cost. This is because in the short run one factor remains fixed, so any additional increase in the cost should be on the cost on the employing an additional variable factor (or labour). Therefore, the sum total of all the marginal cost of producing ‘n’ units of output is called TVC of producing nth unit of output. That is,
ΣMC = TVC
For a diagrammatic representation of this relationship with schedule, follow the given link and scroll down to 'Example 2'