A cost-output relation for a specific plant and operating environment is the:

Question

Quizplus · Accepted Answer

A short-run cost curve captures the cost-output relation for a specific plant and operating environment in the short-run when at least one input is fixed. This curve shows the minimum possible cost for producing each level of output in the short-run, given the fixed input. Therefore, it is the best choice for the given question. B, C, and D all relate to the long-run and do not capture the same cost-output relation as a short-run cost curve.

A Cost-Output Relation for a Specific Plant and Operating Environment