Asked by
Sauravdeep Kingra
on Oct 12, 2024
Verified
In the short run,when output is zero
A) total cost is zero.
B) total cost is equal to variable cost.
C) total cost is equal to fixed cost.
D) it is impossible to determine total cost.
Total Cost
The complete cost of production, including both fixed and variable costs, incurred by a firm in producing and selling a quantity of a good or service.
Variable Cost
Expenses that vary in relation to the amount of products or services a company generates.
Fixed Cost
Costs that do not change with the level of production or sales, such as rent, salaries, and loan repayments.
- Differentiate between short-term and long-term decision-making processes in businesses.
- Elucidate the impact that changes in production have on fixed, variable, and cumulative costs.
Verified Answer
SF
Learning Objectives
- Differentiate between short-term and long-term decision-making processes in businesses.
- Elucidate the impact that changes in production have on fixed, variable, and cumulative costs.