Short-run costs that depend on the level of output are
A) total fixed cost only.
B) total variable costs only.
C) total costs only.
D) both total variable costs and total costs.

Question

Quizplus · Accepted Answer

Total variable costs and total costs both depend on the level of output in the short run. Total variable costs change with the level of production, and since total costs are the sum of total fixed costs and total variable costs, they also vary with output level. Total fixed costs, by definition, do not change with output levels in the short run.

Short-Run Costs That Depend on the Level of Output Are