Topic 2 Problem Flashcards
1
Q
How to find variable cost?
A
Cost to make one unit (Labor & Material) X
Total units made
2
Q
How to find fixed cost?
A
Total cost of product —variable cost X
Number of units produced
3
Q
Marginal value
A
Marginal cost = Change in total cost/Change in number of customers
4
Q
Average cost
A
Average cost = Total cost/Number of customers
5
Q
If marginal____ exceeds marginal____, you should carry more customers, because you will earn____ profits
A
Revenue
Cost
Higher
