Changes in short-run total costs result from changes in
A)Variable costs.
B)Fixed costs.
C)Profit.
D)The price elasticity of demand.

Question

Quizplus · Accepted Answer

Short-run total costs are primarily determined by variable costs, which can fluctuate in response to changes in production levels or input prices. Fixed costs, on the other hand, are largely set and typically do not vary in the short-run. Profit and price elasticity of demand are more macroeconomic concepts that do not directly impact short-run total costs.

Changes in Short-Run Total Costs Result from Changes in