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WorksheetsCost of production
Total questions: 26
Worksheet time: 15mins
ΔTR/ΔQ = _____
You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...
fixed cost
variable cost
You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...
fixed cost
variable cost
Which of the following is the best definition of costs?
The total amount of income a business makes from selling products or services.
The amount of money a business has left over after paying for materials.
The total amount of money a business spends.
How much profit was made?
Buy a toy for RF 100. Sell it for 400.
RF 200
RF 300
RF 400
RF 500
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total cost?
$25
$225
$375
$750
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total revenue?
$25
$225
$375
$750
If you own a home, you must pay for electricity you use. The amount you pay changes every month depending on how much you use. This is an example of a...
fixed cost
variable cost
Economists usually assume that ________ is a fixed input in the ________ run.
labor; short
capital; short
labor; long
capital; long
Total variable cost ________ as output increases, and total fixed cost ________ as output increases.
increases; increases
increases; decreases
increases; does not change
does not change; does not change
Total cost is calculated as
the sum of total fixed cost and total variable cost.
the product of average total cost and price.
the sum of all the firm's explicit costs.
the sum of average fixed cost and average variable cost.
Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?
$300
$400
$700
$800
Dana spends $10,000 on remodeling a storefront that she then opens as a shoe store. The business has not been very successful, and she needs an additional $3,000 to keep the shoe store open. Which of the following is true?
The $10,000 Dana spent on remodeling represents a part of the total variable cost of her business.
The $3,000 represents her marginal costs of production.
The $10,000 Dana spent on remodeling is a fixed cost of her business.
The $3,000 Dana needs to keep the deli open represents her total fixed costs.
