1. On typical short run cost curves, which cost curve runs through the lowest point of both average variable cost curve and average cost curve?
- Average total cost curve
- Marginal cost curve
- Average fixed cost curve
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Other questions in this quiz
2. What is long run?
- Time period when the lowest level of output where long-run average cost (LRAC) is minimised.
- Time period when all factor inputs can be changed
- Time period when a firm is unable to change factors of production except for one, usually labour.
3. What are costs?
- The revenue from inputs that are needed to produce a good or service
- The monetary value of inputs that are needed to produce a particular good or service
- The value of inputs that are needed to produce a good
4. What are fixed costs?
- Costs that are independent of output produced e.g. rent, interest paid on loans
- Costs that vary directly with output produced e.g. labour, fuel, raw material costs
- The total cost of production or provision of a service
5. Where aircraft are owned by the airline, this is the cost of what?
- Any loaned finance and also depreciation
- Any loaned finance
- Any debt