In the short run, which of the following statements is correct?
Total cost will exceed variable cost.
In the diagram, curves 1, 2, and 3 represent
total fixed cost, total variable cost, and total cost respectively.
The vertical distance between the total cost and the total variable cost curves differs by an amount that
is constant as output changes.
An explicit cost is
a money payment made for resources not owned by the firm itself.
Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were