Average costs, variable costs, fixed costs, total costs

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  • Created by: Jade
  • Created on: 17-11-12 14:20

1. The lowest level of output where LRAC is minimised is known as what?

  • Moderate efficiency scale
  • Minimum efficiency scale
  • Maximum efficiency scale
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2. 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

3. 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.

4. Nature of costs in most types of transport is that _____ costs are a relatively high proportion of total costs. Particularly true of air and rail transport.

  • Capital
  • Fixed
  • Variable

5. In air transport, a substantial fixed cost item is the annual sum that has to be paid to?

  • Lease aircraft
  • Lease airports
  • Lease passengers




10 questions on costs that can provide a break from more intensive studying.

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