To derive the short-run total cost curve for the firm, plug the short-run fixed _____ amount and the firm's short-run demand for _____ into the total cost function.
A) labor; capital
B) capital; capital
C) labor; labor
D) capital; labor

Question

Quizplus · Accepted Answer

In the short run, capital is typically fixed, and labor is variable. Therefore, to derive the short-run total cost curve, you plug the fixed amount of capital and the firm's demand for labor into the total cost function.

To Derive the Short-Run Total Cost Curve for the Firm