Average costs, variable costs, fixed costs, total costs

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

1. 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.
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. What is average cost and the equation?

  • Average cost is the unit cost of production. Average cost = Total cost/quantity
  • Average cost is the change in total cost that occurs when output is changed by one unit. Average cost = Quantity/total cost
  • Average cost is the unit cost of production. Average cost = Total cost x quantity

4. 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

5. What are costs?

  • 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
  • The revenue from inputs that are needed to produce a good or 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 »