How to calculate TFC

How to calculate TFC 6.18 Solution: Output (Units) 2 3 4 5 6 Total Variable cost (t) 30 40 45 55 75 120 Total Fixed Cost (Z) TFC 60 60 60 60 60 60 60 Introductory Microec Total Cost (t) TEC + TVC - 60+ o - 60 60+30= 90 60 +40= 100 60 + 45 = 105 60 55 115 60 + 75 - 135 60 + 120 = 180

Dear student
Total Fixed Cost (TFC)
This refers to the costs incurred by a firm in order to acquire the fixed factors for production like cost of machinery, buildings, depreciation, etc. In short run, fixed factors cannot vary and accordingly the fixed cost remains the same through all output levels. These are also called overhead costs.
  Also, TC = TFC + TVC
       Thus TFC=TVC - TC
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