Costs Flashcards
1
Q
How do you calculate Average total cost/unit cost
A
ATC= total cost divided by units of output
2
Q
How do you calculate AFC/AVC cost
A
FC/VC divided by output produced
3
Q
What is marginal cost
A
The additional cost of producing one more unit
Old total cost minus new total cost
4
Q
Whats the difference between fixed and variable costs
A
Fixed costs don’t change with output produced eg rent, business rates (tax)
