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WorksheetsShort-run and Long-run: Theory of Costs 2
Total questions: 12
Worksheet time: 8mins
Which of the following are fixed costs?
Rent
Cost of labour
Material costs
Loan payments
Fixed costs are also referred to as
Average fixed costs
Total Costs
Sales Costs
Total Fixed Costs
Select all the options that comprises short-run costs:
Variable Costs
Fixed Costs
Expense Costs
Sunk costs
Fixed costs + variable costs =
Average costs
Fixed Costs
Total Cost
Marginal Cost
When production increases fixed costs does what?
Increases
Decreases
Remains the same
Diminishes
In the long-run all costs are:
Variable Costs
Fixed Costs
Total Cost
Marginal Cost
When production is zero what would be the fixed cost?
Not enough information
More than zero
Zero
Same as if production was NOT zero
When production increases variable costs does what?
Increases
Decreases
Remains the same
Diminishes
When production increases average fixed costs does what?
Increases
Decreases
Remains the same
Decreases then increases
When production increases average total cost tends to do what?
Increases
Decreases
Remains the same
Decreases then increases
Identity curve number 3
Fixed cost
Variable cost
Total cost
Marginal cost
Identity curve number 2
Fixed cost
Variable cost
Total cost
Marginal cost
