Total costs are
A)variable costs plus average cost.
B)marginal cost plus average cost.
C)fixed costs plus variable costs.
D)marginal cost minus average cost.
E)fixed costs minus variable costs.

Question

Quizplus · Accepted Answer

Total costs are the sum of fixed costs and variable costs. Fixed costs are the costs incurred by a firm which do not vary with the level of production, while variable costs vary with the level of production. Therefore, the sum of fixed costs and variable costs gives the total cost of production.

Total Costs Are