Ch. 5 Lessons 2 and 3 Production, Cost, Revenue, Profit

 Total Revenue - Total Cost = _____

• Profit
• Revenue
• Marginal Revenue
• Variable Revenue

Change in Total Revenue/Change in Quantity

• Marginal cost
• Marginal Revenue
• Profit
• Marginal Profit

Costs that do not change when the quanity of output produced changes?

• Fixed Costs
• Variable Costs
• Explicit Costs
• Implicit Costs

Additional cost associated by producing one additional unit of product.

• Fixed Costs
• Average Costs
• Marginal Costs
• Emplicit Costs

Costs that change as the quantity of outputs changes.

• Fixed Costs
• Variable Costs

You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...

• fixed cost

• variable cost

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...

• fixed cost

• variable cost

Your business rents a building on Main Street in Cedar Falls.  Every month you pay exactly $750 to rent the building.  This is an example of a...

• FIXED cost.
• VARIABLE cost.

If you own a home, you must pay for electricity you use.  The amount you pay changes every month depending on how much you use. This is an example of a...

• FIXED cost.
• VARIABLE cost.

Which statement about total fixed cost is correct?

• It falls as output increases.

• It is calculated by adding total cost and total variable cost

• It is calculated by dividing total cost by output.

• It must be paid even if output is zero.