Short-run total cost is defined as
A) the sum of marginal cost and total variable cost.
B) price of labor per unit multiplied by the number of labor units.
C) total fixed cost plus total variable cost.
D) total capital cost only.

Question

Quizplus · Accepted Answer

Short-run total cost is the sum of total fixed cost and total variable cost. Total fixed cost is the constant cost that a producer incurs even if he/she does not produce anything whereas total variable cost refers to the cost of variable inputs such as labor and raw materials that changes with the level of production. Therefore, short-run total cost is the sum of these two costs.

Short-Run Total Cost Is Defined as