chapter 26 Flashcards
1
Q
how to make a profit
A
make sure income exceeds the costs
2
Q
what are fixed costs
A
these are costs that do not change as the output or sales change.
3
Q
what are variable costs
A
costs that are directly related to the level of output of sales. they increase when output increase.
4
Q
how to calcualate total costs
A
fixed costs + variable costs
5
Q
what is unit cost
A
the cost of producing one product
6
Q
how to calcualate unit cost
A
total cost/output
7
Q
what is marginal cost
A
the cost of producing one extra unit
8
Q
what is opportunity cost
A
this is related to what the business could’ve spent their money on.
9
Q
how to calculate average revenue
A
total revenue/number of sales
10
Q
A
