Total costs are
A)fixed costs plus average total costs.
B)average fixed costs plus variable costs.
C)fixed costs plus variable costs.
D)fixed costs minus variable costs.
E)fixed costs divided by total variable costs.

Question

Quizplus · Accepted Answer

Total costs in economics are the sum of fixed costs and variable costs. Fixed costs do not change with the level of production, while variable costs do. Therefore, the total cost of production is the sum of these two types of costs.

Total Costs Are