Cost function is represented by the following formula:
A) Total cost = Fixed costs + (Variable rate x Output)
B) Total cost = Fixed costs - (Variable rate x Output)
C) Total cost + Fixed costs = (Variable rate x Output)
D) Total cost = (Fixed rate x Output) + (Variable rate x Output)

Question

Quizplus · Accepted Answer

The correct formula for the total cost function is Total cost = Fixed costs + (Variable rate x Output), where fixed costs remain constant regardless of the level of production, and variable costs change with the level of output.

Cost Function Is Represented by the Following Formula