What is typically represented as fixed costs plus variable costs?

Total costs are the sum of fixed costs and variable costs incurred by a firm in the production of goods or services. Fixed costs are those expenses that do not change with the level of output, such as rent or salaries, while variable costs fluctuate based on production levels, like raw materials and labor directly associated with production output.

When analyzing a firm's cost structure, understanding total costs is essential for assessing profitability and making decisions regarding pricing and production levels. Total costs provide a complete view of what it costs to operate, allowing firms to determine the minimum price at which they can sell their products to cover all expenses.

Average costs, on the other hand, represent the total cost per unit of output but do not directly represent the components of fixed and variable costs. Elastic costs and input costs are not standard terms used in economic analysis to describe the totality of costs incurred during production. Hence, the proper answer clearly identifies total costs as the combination of fixed and variable expenses.