Total cost equals the sum of fixed costs and average costs. True False

Question

Question

Total cost equals the sum of fixed costs and average costs.

	True
	False

Answer 1

Answer #1

False

A firm generally occurs two type of cost that are

fixed cost and variable cost

Fixed cost are those cost which are constant in the short run.

These are the initial cost

Variable cost are those cost which increases as the output increases

average cost is the ratio of total cost divided by output

So Total cost= fix cost+ variable cost

Answer 2

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