The costs that depend on output in the short run are ?
Correct answer: C. both total variable costs and total costs.
- A. total fixed cost only.
- B. total variable costs only.
- C. both total variable costs and total costs.
- D. total costs only
Explanation
In the short run, total variable cost changes with output, and total cost changes because it equals total fixed cost plus total variable cost. Total fixed cost alone does not depend on output.
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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.
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