For every quantity of output, there is an optimal short-run
A) total cost curve, but not a short-run average cost curve
B) total cost curve and a short-run average cost curve
C) average cost curve, but not a short-run total cost curve

Question

Quizplus · Accepted Answer

In the short run, a firm faces fixed costs and variable costs. The total cost curve shows the total cost of producing different levels of output in the short run, while the short-run average cost curve shows the average cost (total cost divided by output) at each level of output. Therefore, for every quantity of output, there is both an optimal total cost and short-run average cost curve.

For Every Quantity of Output, There Is an Optimal Short-Run