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 is long run?
- 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.
- Time period when the lowest level of output where long-run average cost (LRAC) is minimised.
3. On typical short run cost curves, which cost curve runs through the lowest point of both average variable cost curve and average cost curve?
- Marginal cost curve
- Average fixed cost curve
- Average total cost curve
4. Where aircraft are owned by the airline, this is the cost of what?
- Any debt
- Any loaned finance and also depreciation
- Any loaned finance
5. What are variable costs?
- The total cost of production or provision of a service
- 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