Total cost is the sum of _____. a) marginal cost and fixed cost b) marginal cost and variable cost c) variable cost and fixed cost

Let's define the key terms in this exercise: 1. Total Cost (TC): The total cost of producing a certain quantity of goods or services, including fixed and variable costs. 2. Marginal Cost (MC): The additional cost incurred by producing one more unit of a good or service. 3. Variable Cost (VC): The costs that change as the output of goods or services increases or decreases. Examples include raw materials, labor, and utilities. 4. Fixed Cost (FC): The costs that remain constant regardless of the level of production or output. Examples include rent, salaries, and equipment leases.

Now let's analyze the options given in the exercise: a) Marginal cost and fixed cost: Marginal cost represents the cost of producing one additional unit of a good or service, while fixed cost represents the constant costs that do not change with output. Combining these two costs does not account for the total production cost. b) Marginal cost and variable cost: Marginal cost represents the cost of producing one additional unit, and variable cost accounts for the costs that change with output. However, combining these costs still does not account for the fixed costs, which are part of the total production cost. c) Variable cost and fixed cost: Variable cost accounts for the costs that change with output, and fixed cost represents the costs that remain constant regardless of output. Adding these two costs together will provide the total cost of producing a certain quantity of goods or services.

Based on the analysis of the given options, it can be concluded that the total cost is the sum of variable cost and fixed cost. Therefore, the correct option is: c) Variable cost and fixed cost.