Average costs, variable costs, fixed costs, total costs

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  • Created by: Jade
  • Created on: 17-11-12 14:20

1. What is short run?

  • Time period when the lowest level of output where long-run average cost (LRAC) is minimised.
  • 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
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Other questions in this quiz

2. Where aircraft are owned by the airline, this is the cost of what?

  • Any debt
  • Any loaned finance and also depreciation
  • Any loaned finance

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 the equation for total cost?

  • Total cost = Fixed cost + Variable cost
  • Total cost = Fixed cost/ Variable cost
  • Total cost = Variable cost/Fixed cost

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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davidsalter

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10 questions on costs that can provide a break from more intensive studying.

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