Total cost includes
A) the cost of variable resources only.
B) the cost of fixed resources only.
C) the cost of both variable and fixed resources.
D) the cost of neither variable nor fixed resources.
E) all explicit costs and all the implicit costs that actually must be paid using money.

Question

Quizplus · Accepted Answer

Total cost includes both variable and fixed resources. Variable resources are those whose cost changes with the level of output or production, while fixed resources are those whose cost remains constant regardless of the level of output or production. Total cost is the sum of both types of resources as well as any additional explicit and implicit costs that must be paid.

Total Cost Includes