Average costs, variable costs, fixed costs, total costs
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?- Created by: Jade
- Created on: 17-11-12 14:20
Other questions in this quiz
2. In air transport, a substantial fixed cost item is the annual sum that has to be paid to?
- Lease aircraft
- Lease airports
- Lease passengers
3. The lowest level of output where LRAC is minimised is known as what?
- Minimum efficiency scale
- Maximum efficiency scale
- Moderate efficiency scale
4. What is short run?
- Time period when a firm is unable to change factors of production except for one, usually labour.
- Time period when all factor inputs can be changed
- Time period when the lowest level of output where long-run average cost (LRAC) is minimised.
5. 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
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