Costs

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Average Cost
The average cost of production per unit calculated by dividing the total cost by the quantity produced.It is equal to average variable cost + average fixed cost
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Economic Cost
The oppotunity cost of an input to the production process
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External Economies of Scale
Falling average costs of production, shown by a downward shift in the average cost curve, which result from a growth in the size of the industry within which a firm operates.
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Fixed or indirect or overhead costs
Costs which do not vary as the level of production increases or decreases
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Imputed Cost
An economic cost which a firm does not pay for with money to another firm but is the opportunity cost of factors of production which the firm itself owns
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Internal Economies Of Scale
Economies of scale which arise because of the growth in the scale of production within a firm
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Marginal Cost
The cost of producing an extra unit of output
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Minimum efficient scale of production
the lowest level of output at which long run average cost is minimised
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Optimal level of Production
The range of output over whicih long average cost is lowest
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Semi-Variable Cost
A cost which contains within it a fixed cost element and a variable cost element
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Total Cost
The cost of producing any given level of output. It is equal to total variable cost + total fixed cost
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Variable or direct or prime costs
Costs which vary directly in proportion to the level of output of a firm.
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Other cards in this set

Card 2

Front

Economic Cost

Back

The oppotunity cost of an input to the production process

Card 3

Front

External Economies of Scale

Back

Preview of the front of card 3

Card 4

Front

Fixed or indirect or overhead costs

Back

Preview of the front of card 4

Card 5

Front

Imputed Cost

Back

Preview of the front of card 5
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