Costs of Production

Costs of Production

Mrs. Stuart

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Fixed cost is a cost that does not

no matter how much is produced.

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A variable cost is a cost that

or falls based on production.

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Total cost is your fixed cost and variable cost combined. Your costs will

every month because of this.

Multiple Choice

Increasing marginal returns takes place when you subtract one worker.

• True

• False

Open Ended

How can hiring too many workers hurt your business?