Total cost can be defined as:
A)the amount that a firm spends on all inputs that go into producing a good or service.
B)the amount that a firm receives from the sale of goods and services.
C)the amount that an individual spends on all normal goods and services within a specified period of time.
D)None of these is correct.

Question

Quizplus · Accepted Answer

Total cost refers to the amount that a firm spends on all inputs, including labor, materials, and fixed costs, in order to produce a good or service. It is important for firms to understand their total cost in order to determine pricing and profitability. Choices B and C refer to revenue and individual spending, respectively, which are not the same as total cost. Choice D is incorrect as the other options provide possible definitions of total cost.

Total Cost Can Be Defined As