The Formula for a Mixed Cost Is

question 52

Multiple Choice

The formula for a mixed cost is

• A) total cost = total variable cost +(fixed rate *amount of output).
• B) total cost = total fixed cost + (variable rate * amount of output).
• C) total cost = variable rate * amount of output.
• D) None of these are correct.

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Definitions:

Long Run

A period of time in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

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.