IB Economics Costs

Front

Short run

Back

The short run is when at least one input is fixed while others are variable

Front

Salary given to permanent staff is an example of which kind of cost?

Back

fixed cost

Front

A person using his own capital in business is an e.g of

Back

implicit cost

Front

Opportunity costs

Back

the loss of potential gain from other alternatives when one alternative is chosen

Front

Fixed costs

Back

Costs that do not depend on the level of production

Front

Types of cost in the curve are

Back

Total, variable and fixed

Front

Cost per unit of output is

Back

AC

Front

Marginal costs is

Back

the cost added by producing one additional unit

Front

The shape of Marginal cost is

Back

It first decreases as units increase, then increase

Front

Formula for marginal costs

Back

Change in costs divided by change in quantities