Average costs, variable costs, fixed costs, total costs

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

1. What is the equation for total cost?

  • Total cost = Fixed cost + Variable cost
  • Total cost = Fixed cost/ Variable cost
  • Total cost = Variable cost/Fixed cost
1 of 14

Other questions in this quiz

2. 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

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

  • Moderate efficiency scale
  • Minimum efficiency scale
  • Maximum efficiency scale

4. What is marginal cost?

  • 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.
  • Marginal cost are costs that vary directly with output produced.

5. What are variable costs?

  • Costs that vary directly with output produced e.g. labour, fuel, raw material costs
  • Costs that are independent of output produced e.g rent, interest paid on loans
  • The total cost of production or provision of a service

Comments

davidsalter

Report

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

Similar Economics resources:

See all Economics resources »See all The company, revenue and costs resources »