Costs of Production

Costs of Production

Mrs. Stuart

Fill in the Blank

Fixed cost is a cost that does not __________ no matter how much is produced.

Fill in the Blank

A variable cost is a cost that _______ or falls based on production.

Fill in the Blank

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?