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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Other questions in this quiz
2. What is the total cost?
- The total cost of production or provision of a service
- The total cost of production of a service
- The total cost of provision of a service
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 is marginal cost?
- Marginal cost are costs that vary directly with output produced.
- Marginal cost is the change in total cost that occurs when output is changed by one unit.
- Marginal cost is the unit cost of production.
5. 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.