The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Overhead costs are identical to fixed costs.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-Overhead costs are identical to fixed costs.

Quizplus · Accepted Answer

Overhead costs can include both fixed and variable costs, whereas fixed costs do not vary with the level of production or sales.

The Figure Given Below Shows Three Short Run Average Total