Chap 3.7 Flashcards
1
Q
What is Fixed Costs?
A
Fixed costs are the cost beared by the firms, and it need to be paid whether you use it or not.
2
Q
What is variable costs
A
Variable costs are costs of raw materials which normally vary with the level of output.
3
Q
Total variable cost formula
A
Total variable cost = variable cost per unit * quantity produced
4
Q
What is average cost
A
It is the per unit cost obtained by dividing the total cost by total output
5
Q
What is revenue
A
Revenue is the money earned by the business earned by selling its goods and services.
6
Q
What is break even
A
Its when the total revenue is equal to the total cost.
