In the short run, total costs equal
A) the sum of total fixed costs and total variable costs.
B) the sum of total fixed costs and total explicit costs.
C) the sum of total variable costs and total implicit costs.
D) the sum of total fixed costs and total implicit costs.

Question

Quizplus · Accepted Answer

In the short run, total costs comprise of both fixed and variable costs. Fixed costs do not vary with output levels, whereas variable costs change with output. Therefore, the sum of total fixed costs and total variable costs equals total costs.

In the Short Run, Total Costs Equal