Costs of production

Cost of producing one more unit

• total cost (TC)

• marginal cost (mc)

• fixed cost

• variable cost

Which of the following is an example of a fixed cost?

• Raw materials

• Electricity

• Rent

• workers that get paid by the hour

Which of the following is a variable cost?

• Rent

• Insurance

• Manager's salary (agreed in advance on a contract)

• Raw materials

Costs that do not change with different levels of production

• fixed cost

• variable cost

• total cost

• average total cost

costs that do change with different levels of production

• fixed cost

• variable cost

• total cost

• average total cost

The price of a good multiplied by the quantity sold

• Revenue

• Profit

• Cost

• Income

(price of a good X quantity) minus all costs =

• Revenue

• Profit

• Costs

• Income

The cost of producing one more unit..

• total cost

• marginal cost

• fixed cost

• variable cost

What quantity of goods should this firm produce to mazimize profits?

• 2

• 3

• 4

• 5

The amount of money a business earns from selling one more unit:

• Marginal cost

• Marginal revenue

• Marginal product

• Total output