Costs Flashcards
1
Q
Fixed costs
A
Never change according to output
2
Q
Variable costs
A
Directly linked to output and change accordingly
3
Q
Total costs formula
A
FC+VC
4
Q
Average costs
A
TC divided by output
5
Q
Marginal costs
A
The cost of making the next product
6
Q
Total revenue
A
Price x quantity sold
7
Q
Average revenue
A
Total revenue/output
