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Economic Definition of TVC. Defined.

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Term TVC Definition: The abbreviation for total variable cost, which is cost of production that changes with changes in the quantity of output produced by a firm in the short run. Total variable cost is one part of total cost. The other is total fixed cost. Variable cost depends on the level of output. If a firm produces more output, then variable cost is greater. If a firm produces no output, then variable cost is zero. A cost measure directly related to total variable cost is average variable cost.

 

« TU | two-sector aggregate expenditures line »

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