AP Microeconomics: Production Costs

Which of the following isn't a fixed cost?

• Rent

• Telephone/Internet Service

• Workers

• Insurance

A cost that doesn't change with the firm's output is a

• Fixed Cost

• Variable Cost

• Total Cost

• Marginal Cost

Fixed Cost + Variable Cost =

• Total Cost

• Average Total Cost

• Marginal Cost

• Average Production Cost

A cost that changes with the firm's production is a _____

• Fixed Cost

• Variable Cost

• Production Cost

• Output Cost

An example of a variable cost might be . . .

• workers

• supplies

• food

• all of these are variable costs

The cost of producing one additional unit of a good . . .

• Marginal Cost

• Average Total Cost

• Average Fixed Cost

• Total Cost

Total Revenue =

• Quantity Sold x Price

• Price X Total Cost

• Total Cost / Quantity Sold

• Variable Cost / Quantity Sold

Accounting Profit =

• Total Revenue - Total Cost

• Total Revenue / Total Cost

• Total Cost / Quantity Sold

• Fixed Cost / Quantity Sold

The difference between Accounting Profit and Economic Profit =

• Opportunity Cost

• Variable Cost

• Marginal Cost

• Total Cost

Implicit Costs are

• Opportunity Costs

• the same as Explicit Costs

• part of variable costs

• the same as Fixed Costs