The short-run total cost curve:
A)shows the minimized total cost of producing a given quantity of output.
B)shows the outputs that correspond to minimized total cost when at least one input is fixed.
C)shows the minimized total cost of producing a given quantity of output when at least one input is fixed.
D)shows the minimized total cost of producing a given quantity of output when all inputs are fixed.

Question

Quizplus · Accepted Answer

The short-run total cost curve shows the minimized total cost of producing a given quantity of output when at least one input is fixed. This is because in the short run, some inputs (such as capital) are fixed, while others (such as labor) are variable. Therefore, the firm must choose the optimal combination of variable inputs that corresponds to the lowest possible cost for a given level of output. The short-run total cost curve shows the minimized total cost of producing a given quantity of output when at least one input is fixed. This is because in the short-run, at least one input is fixed and cannot be adjusted, so the firm must make production decisions based on the variable inputs and their corresponding costs. Therefore, the short-run total cost curve reflects the combination of inputs that will result in the lowest possible cost for producing a given level of output.

The Short-Run Total Cost Curve