The short-run total cost curve is the sum of two components
A) Short-run and long-run
B) Total variable cost curve and total fixed cost curve
C) Average cost curve and marginal cost curve
D) Economies of scale and economies of scope

Question

Quizplus · Accepted Answer

The short-run total cost curve is the sum of two components: total variable cost curve and total fixed cost curve. Total variable cost curve shows the total cost of variable inputs (e.g. labor and materials) used to produce a given level of output, while total fixed cost curve shows the total cost of fixed inputs (e.g. capital and equipment) that do not vary with output. The sum of these two curves gives the total cost of production at any level of output in the short run.

The Short-Run Total Cost Curve Is the Sum of Two