a) Costs

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7 Terms

1
New cards

  • define total cost

  • state the formula for total cost


  • cost of producing all output

  • TC = TFC + TVC


2
New cards

  • define average total cost

  • state the formula for average total cost


  • cost of producing one unit of output

  • ATC = TC/Q


3
New cards

  • define marginal cost

  • state the formula for marginal cost


  • cost of producing one additional unit of output

  • MC = ΔTC/ΔQ


4
New cards

  • define fixed cost

  • define total fixed cost

  • define average fixed cost


  • cost that does not change depending on the level of output

  • fixed cost of producing all output

  • fixed cost of producing one unit of output


5
New cards

  • state the formula for average fixed cost


  • AFC = TFC/Q


6
New cards

  • define variable cost

  • define total variable cost

  • define average variable cost


  • cost that changes depending on the level of output

  • variable cost of producing all output

  • variable cost of producing one unit of output


7
New cards

  • state the formula for average variable cost


  • AVC = TVC/Q