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6. 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.
7. 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
8. In air transport, a substantial fixed cost item is the annual sum that has to be paid to?
- Lease passengers
- Lease aircraft
- Lease airports
9. What are fixed costs?
- The total cost of production or provision of a service
- Costs that are independent of output produced e.g. rent, interest paid on loans
- Costs that vary directly with output produced e.g. labour, fuel, raw material costs
10. The lowest level of output where LRAC is minimised is known as what?
- Moderate efficiency scale
- Minimum efficiency scale
- Maximum efficiency scale
11. What is average cost and the equation?
- Average cost is the unit cost of production. Average cost = Total cost x quantity
- 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
12. 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
13. 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
14. Where aircraft are owned by the airline, this is the cost of what?
- Any debt
- Any loaned finance and also depreciation
- Any loaned finance