Sales, Revenue and Costs Flashcards
1
Q
Revenue Formula
A
Price x Quantity of Output
2
Q
Fixed Costs Definition and Examples
A
Costs which stay the same at all levels of output in the shortrun (Rent, Insurance, Machinery)
3
Q
Stepped Fixed Costs
A
A rise in fixed costs in the long run (rising production = more machinery)
4
Q
Variable Costs Definition and Examples
A
costs which increase directly as output rises (raw materials, wages)
5
Q
Total Costs Formula
A
Fixed Costs + Variable Costs
6
Q
Average/unit cost Formula
A
Total Cost / Output
7
Q
Profit Formula
A
Total revenue - Total Costs
