Short run average total costs are equals to the sum of ____ and _____?
Correct answer: D. Short run average variable costs, profit run average fixed costs
- A. Short run opportunity costs, profit
- B. Short run variable costs, profit
- C. Short run average variable costs, profit
- D. Short run average variable costs, profit run average fixed costs
Explanation
Average total cost includes both average variable cost and average fixed cost: SRATC = SRAVC + SRAFC. Profit is not a cost component, so the wording of option d contains a likely typographical error but clearly intends average fixed costs.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
In the short run a firm will produce zero output if ?
For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
The limit on the consumption bundles that a consumer can afford is known as ?
When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
If a long run average cost curve is falling form left to right this is an example of ?
In monopolistic competition ?