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
1 of 12
Economic Cost
The oppotunity cost of an input to the production process
2 of 12
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.
3 of 12
Fixed or indirect or overhead costs
Costs which do not vary as the level of production increases or decreases
4 of 12
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
5 of 12
Internal Economies Of Scale
Economies of scale which arise because of the growth in the scale of production within a firm
6 of 12
Marginal Cost
The cost of producing an extra unit of output
7 of 12
Minimum efficient scale of production
the lowest level of output at which long run average cost is minimised
8 of 12
Optimal level of Production
The range of output over whicih long average cost is lowest
9 of 12
Semi-Variable Cost
A cost which contains within it a fixed cost element and a variable cost element
10 of 12
Total Cost
The cost of producing any given level of output. It is equal to total variable cost + total fixed cost
11 of 12
Variable or direct or prime costs
Costs which vary directly in proportion to the level of output of a firm.
12 of 12
Other cards in this set
Card 2
Front
Economic Cost
Back
The oppotunity cost of an input to the production process
Comments
No comments have yet been made