Understanding Fixed and Variable Costs

Gabriel Almeida Braga introduces a video on his channel 'Economia para Iniciantes' discussing fixed and variable costs. He explains fixed costs as those that do not change with production levels, using rent as an example. Variable costs, on the other hand, vary with production, such as ingredients in a hamburger business. The video also covers how to calculate average fixed and variable costs, total costs, and total average costs. Gabriel concludes by thanking viewers and citing sources used in the video.

What is the main topic discussed in the video?

• Fixed and variable costs

• The history of economics

• Marketing techniques

• Investment strategies

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

• Cost of raw materials

• Employee wages

• Rent of the premises

• Utility bills

How is the average fixed cost calculated?

• By dividing total fixed costs by the number of units produced

• By multiplying total fixed costs by the number of units produced

• By adding total fixed costs to total variable costs

• By subtracting total variable costs from total fixed costs

What defines a variable cost?

• A cost that remains constant regardless of production levels

• A cost that changes with the level of production

• A cost that is incurred only once

• A cost that is fixed annually

Which of the following is NOT a variable cost in a hamburger business?

• Cost of lettuce

• Cost of buns

• Monthly rent

• Cost of cheese

How do you calculate the average variable cost?

• By subtracting total fixed costs from total variable costs

• By adding total variable costs to total fixed costs

• By multiplying total variable costs by the number of units produced

• By dividing total variable costs by the number of units produced

What is the total cost of production?

• Only the variable costs

• Only the fixed costs

• The difference between fixed and variable costs

• The sum of fixed and variable costs

How is the average total cost calculated?

• By subtracting total variable cost from total cost

• By dividing total cost by the number of units produced

• By multiplying total cost by the number of units produced

• By adding total cost to total fixed cost

What happens to total costs as production increases?

• They remain constant

• They fluctuate randomly

• They decrease

• They increase

What resources were used to create the video?

• Online articles

• Personal experiences

• Interviews with experts

• Books on economics