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
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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