Business Costs and Revenue Flashcardizz

Front

What is a fixed cost?

Back

A cost that is the same no matter how many units are produced.

Front

What is a variable cost?

Back

A cost that changes with the number of units produced

Front

What do total costs equal?

Back

The sum of fixed costs and variable costs

Front

What is average total cost?

Back

The total cost divided by the quantity of output

Front

What is marginal cost?

Back

The cost of producing an additional unit of a good.

Front

Is the marginal cost of adding a passenger at the last minute close to zero for an airline?

Back

Yes, because the airline doesn't have to pay any more for fuel, pilot, or flight attendants.

Front

Costs of equipment and fees for operating licenses are

Back

fixed costs

Front

Firms want to maximize

Back

Profit

Front

The word Ms. Hardesty always wants you to know how to spell is spelled

Back

business

Front

Price x Quantity gives you

Back

revenue