Question

Total cost is the a. amount a firm receives for the sale of its output. b. fixed cost less variable cost. c. market value of the inputs a firm uses in production. d. quantity of output minus the quantity of inputs used to make a good.

Answer 1

Answer:

C. Market value of the inputs a firm uses in production.

Explanation:

Total cost is the summation of all cost incurred by a firm as a result of production. It is also market value of the inputs a firm uses in production.

Total cost refers to the summation of fixed cost, which is a cost that does not vary with the level of out put and variable cost, which varies with the level of output.

When producers manufacture goods, the total cost of production of such goods will be factored in the final price such that the producer is able to earn profit.